The recognition of the Philippines as an Upper-Middle-Income Country (UMIC) by the World Bank is a historic milestone that every Filipino should celebrate.
This achievement reflects years of economic resilience, sound macroeconomic management, sustained growth, and structural reforms. It sends a strong signal to the global investment community that the Philippines is moving in the right direction.
We commend President Ferdinand R. Marcos Jr., the Department of Economy, Planning, and Development (DEPDev), the Department of Finance, and all economic managers whose policies helped bring the country to this important milestone.
However, this achievement should not only be measured by higher national income statistics—it must also be felt by ordinary Filipino families.
The true test of becoming an upper-middle-income economy is whether the middle class has more money in their pockets, greater purchasing power, and a better quality of life.
Today, millions of Filipino professionals, teachers, nurses, engineers, entrepreneurs, and workers continue to bear a disproportionate share of the country’s income tax burden. While the economy has grown significantly since the Tax Reform for Acceleration and Inclusion (TRAIN) Law was enacted in 2018, the ₱250,000 annual personal income tax exemption has remained unchanged, despite inflation and rising living costs.
As the country enters this new stage of economic development, we respectfully urge President Marcos to prioritize legislation that will increase the personal income tax exemption from ₱250,000 to ₱1 million annually.
A ₱1 Million Tax-Free Income policy would:
This reform can be implemented gradually through a phased approach while strengthening revenue administration through digitalization, artificial intelligence, better tax compliance, and stronger enforcement against tax evasion, smuggling, and corruption.
Economic progress should translate into tangible improvements in people’s lives.
As we celebrate the country’s entry into the ranks of upper-middle-income economies, let us ensure that this milestone becomes the beginning of a new era—one where hardworking Filipinos are rewarded, the middle class is empowered, investor confidence is strengthened, and inclusive growth becomes a reality.
A stronger economy deserves a stronger middle class.
The next milestone should not simply be a higher income classification—it should be a better quality of life for every Filipino.
