Safeguarding hope

ACcording to a recent Pulse Asia survey of 1,200 respondents, some 43 percent said they expected this year’s Christmas to be more prosperous than last year’s, while up to 42 percent believed their holidays would be as prosperous as what they had experienced the year before. Based on the same survey, it appears that this upbeat disposition will carry over to the new year, given that up to 92 percent of respondents said that they will face the incoming 2023 with hope.

Many Filipinos do have something to look forward to as some of the reforms under the previous administration that we sponsored will take effect with the coming of the New Year. Specifically, income tax rates for some government and private sector workers will be lowered starting from January 1, 2023, under the third tranche of rate reductions mandated by RA 10963 or the Tax Reform for Acceleration and Inclusion Law.

While workers with yearly income worth P250,000 or less will

remain tax-free, those earning over P250,000 but less than P400,000 will be levied a 15-percent tax. Previously, the rate was 20 percent.

For those earning yearly incomes between P400,000 and P800,000, the tax due will consist of a fixed obligation worth P22,500 plus 20 percent of the excess over P400,000. Before, the fixed amount was P30,000 while the percentage levied was 25 percent.

Then, workers earning over P800,000 but less than P2 million will now be expected to pay P102,500 plus 25 percent of the excess over

P800,000. Under the previous structure, fixed income earners needed to pay P130,000 and 30 percent of the excess over P800,000.

Finally, for those with annual incomes between P2 million and P8 million, their tax obligations will consist of P405,500 plus 30 percent of the excess over P2 million. Previously, these workers needed to pay P490,000 and 32 percent of the excess over P2 million.

Some tax experts say the new rates could result in additional takehome pay of up to P18,000 a month, depending on the income brackets workers are situated. Any additional amount can help ordinary families cope with rising prices of basic commodities and services, and keep their hopes up about life getting better for them.

This hope should be safeguarded and nurtured among our families, as it will be crucial for helping the country tide over some of the challenges that are expected throughout the incoming year—including continuous price increases, persistent global supply chain disruptions, and slowdowns in many of the world’s largest economies.

Keeping our people’s hopes up in the face of crises entails preparing our government to provide whatever assistance and support our people may need. And this is why, as Chairman of the Senate Committee on Finance, we took steps to ensure that the Executive branch will be provided with enough funding to give out assistance or ayuda—albeit in a more targeted fashion—if ever our people will need it.

For instance, under the 2023 budget, up to P102.6 billion has been provided for the Pantawid Pamilyang Pilipino Program (4Ps), which is the government’s long-standing conditional transfer scheme that targets many of the country’s poorest households. Up to P50 billion has also been authorized to be devoted to the social pensions of our indigent senior citizens for their daily subsistence and medical needs.

Many of the programs of the Department of Social Welfare and Development (DSWD) have also been allotted ample funds in the coming year. This includes P36.8 billion for the DSWD’S Protective Services for Individuals and Families in Difficult Circumstances; P5.2 billion for its supplementary feeding program; P6.7 billion for the KALAHI-CIDSS program where local governments

are engaged in the identification, implementation, and completion of poverty alleviation projects and community-driven development; P6.5 billion for the Sustainable Livelihood Program to provide nearly 200,000 household beneficiaries with microenterprise assistance or employment facilitation services,

among many others.

These funds are on top of the P100.2 billion lodged under the National Health Insurance Program to help subsidize the medical costs of our people; the P32.6 billion for medical assistance to indigent and financially-incapacitated patients; the P20.1 billion for the emergency employment services of the Department of Labor and Employment (DOLE) under its Tulong Panghanapbuhay sa Ating Disadvantaged /

Displaced Workers program and its Government Internship Program (GIP); and the billions more devoted to government scholarships, subsidies, vouchers, student loans, and other student financial assistance that enables more of our youth to keep on learning.

It’s a testament to their inner strength that despite many challenges, our people have chosen to receive the New Year with hope and optimism. Such positive energy is

essential to our success as a country. This is why it is only right that the government has taken steps and preparations to keeping this hope alive. Senator Sonny Angara has been in public service for 18 years—9 years as Representative of the Lone District of Aurora, and 9 as Senator. He has authored, co-authored, and sponsored more than 330 laws. He is currently serving his second term in the Senate.