Sen. Tulfo proposes one-month income tax holiday

Senator Erwin Tulfo has proposed a one-month income tax holiday as a form of relief for citizens, particularly the working class, following the exposure of alleged anomalies in multi-billion peso flood control projects.

Senate Bill No. 1446, also known as the "One-Month Tax Holiday of 2025," aims to provide an "extraordinary, and immediate" benefit directly to taxpayers.

Tulfo highlighted that the alleged corruption in flood control projects has significantly undermined public trust in the government's financial management.

The proposed tax break would apply to individual taxpayers earning compensation income during the first payroll month after the bill's approval.

For individuals with mixed income sources, only the compensation income portion will be tax-exempt.

Mandatory contributions to government-run benefit programs like GSIS, SSS, PhilHealth, and Pag-IBIG, as well as loan amortizations and voluntary deductions, will not be covered by this tax holiday.