Senate President Pro Tempore Vicente "Tito" Sotto III has filed a bill seeking to raise the annual income tax exemption to 350,000 pesos by January 2027.

This follows the announcement of President Ferdinand Marcos Jr. during his fifth State of the Nation Address, where he mentioned the planned expansion of the income tax exemption.

Under Senate Bill No. 2338, or the proposed Expanded Income Tax Exemption Act of 2026, Sotto is pushing to raise the annual income tax exemption to 350,000 pesos from the current 250,000 pesos, starting next year.

According to the senator, this aims to allow more Filipino workers to save more from their daily earnings.

This also comes amid rising living costs, with many Filipinos currently struggling to keep up with expenses compared to their income.

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