Manila, Philippines — As soon as March entered, the world was confronted with the exchange of attacks between Iran and the joint forces of Israel and the United States of America.
While the Philippines is not directly in the lines of the tension, the war has had an immediate effect in the country, causing a huge spike in oil prices.
Amid the consecutive mega oil price hikes, it has caused a faster inflation rate among prices of goods in the past two months.
But aside from oil and other goods, consumers were also shocked by the high electricity bill in the month of April.
Amidst the high inflation, oil crisis, increases in electricity costs, and other expenses, the poorest Filipinos are the first to be impacted.
However, middle class workers are also pressured to adapt with the high prices despite not having enough income to adjust to the changes,
In response to this, Senator Win Gatchalian calls for the immediate passage of his author’s GINHAWA BILL or the Granting Increase in Take-Home Pay for All Working Filipinos Act, which seeks to secure higher take-home income for Filipino workers.
The bill proposes to increase the income tax exemption threshold of workers.
The bill also seeks to remove taxes on overtime pay, night differential pay, holiday pay, hazard pay, as well as to increase to P150,000 the tax exemption cap for income bonuses.
Gatchalian noted that adjusting the tax exemption threshold will ensure that workers, particularly the middle class earners, will be taking home more of their income, less the tax obligations.
The senator acknowledged the economic contribution of the middle class sector, which he described as the lifeblood of the local economy.
If passed, the bill aims to benefit at least 20 million individuals in the workforce. It is currently under the Senate Committee on Ways and Means for deliberations.
Aside from Gatchalian, Senator Imee Marcos has likewise filed a similar bill increasing the tax free cap in income to P500,000 while income bonuses to P200,000.—Mia Layaguin, Eurotv News