MANILA, Philippines – Under a revised proposal, Filipinos with a monthly income of P21,000 or below will be exempted from paying personal income tax, generating over P21,000 in savings annually.

This is among the tax reform plans included in the first package crafted and filed by the head of the House ways and means committee in close coordination with the Department of Finance (DOF).

Finance Undersecretary Karl Kendrick Chua said the revised Comprehensive Tax Reform Plan (CTRP) Package One under House Bill (HB) 4774 that was filed by Quirino Representative Dakila Cua retained DOF-proposed exemptions on the first P82,000 of earnings from the 13th month pay and other bonuses received by taxpayers.

This will, in turn, increase the threshold for those who will pay zero tax under the tax reform plan. (READ: Why PH has 2nd highest income tax in ASEAN)

Before Congress' Lenten break, the House ways and means committee chaired by Cua already agreed in principle to tackle the bill as a package, which puts to rest concerns that Congress might abandon the revenue-generating measures of the proposal and only pass the revenue-eroding portion lowering income tax rates.

"Tax rates for 99% of taxpayers will gradually decrease over the next few years of implementation under HB 4774," DOF's Chua said in a statement on Sunday, April 23.

SOURCE: https://www.rappler.com/business/167755-philippines-revised-tax-reform-package