SENATOR Erwin Tulfo has proposed a one-month income tax holiday to provide immediate relief to Filipino workers, citing widespread frustration over alleged anomalies in multi-billion-peso flood control projects nationwide.
In Senate Bill No. 1446, or the “One-Month Tax Holiday of 2025,” Tulfo said the measure seeks to offer a “far, extraordinary, and immediate form of relief” that would directly benefit taxpayers and restore public trust in government fiscal management.
“The exposure of alleged anomalies on flood control projects, involving billions of pesos in public funds, has gravely eroded public trust in government fiscal stewardship,” Tulfo said. “The welfare of the people is the supreme law. It is therefore just and necessary that the State respond by providing tangible relief to the very taxpayers who sustain it.”
The proposed measure grants a one-time, one-month income tax exemption to individual taxpayers receiving compensation income, applicable to the first payroll month following the bill’s approval.
For mixed-income earners, only the portion of compensation income would be tax-exempt.
Tulfo clarified that mandatory contributions to the Government Service Insurance System (GSIS), Social Security System (SSS), PhilHealth, Home Development Mutual Fund (Pag-IBIG), as well as loan amortizations and voluntary deductions, will not be affected.
The bill also includes a non-diminution clause to prevent employers from lowering employee wages during the tax holiday.
“While taxation is recognized as the lifeblood of the State, we must equally recognize that this lifeblood flows from the people themselves,” Tulfo added.