MANILA — Only the signature of President Benigno Aquino III is needed to make the proposed law that will provide for a higher Php82,000 tax exemption ceiling for bonuses of state and private workers currently set at Php30,000.
Isabela Rep. Rodolfo “Rodito” T. Albano III, member for the Minority Bloc of the House committee on Ways and Means said that the President’s support to the proposed measure that was recently ratified by both Chambers of Congress would show not only his pro-workers stance but also his recognition to hard work of millions of Filipino workers.
“We hope that the President will finally affix his signature to the proposed law raising tax exemption cap on 13th month pay of Filipino workers from both the public and the private sectors,” Albano said in a statement.
“The tax exemption will provide more disposable income Filipino workers that will allow them to put more food on the table, provide better for the educational and medical needs of their families and add on to the expenses for various essential services like electricity and water, etc.,” he added.
Overall, the Ilokano solon said the costs of the tax exemptions will still redound to the national economy as these tax exemptions will result in consumer spending that will benefit the national economy.
Albano expressed confidence that implementing government agencies led by the Department of Finance (DoF) will be able to strike a balance between the interest of the workers and of the government in the implementing rules and regulations of the proposed legislation that is expected to be signed by the President anytime soon.
“We are optimistic that the DoF and other agencies of government concerned will be able to include in the IRR concerns and fears raised by some sectors, particularly finance officials, that the increase in the ceiling of tax-exempt bonuses should not be viewed as a revenue loss for the government,” Albano pointed out.
Earlier, finance officials warned that raising the tax exemption cap would result in revenue loss to the government of about Php30 billion per year. But other experts said that any revenue loss would be just Php3 billion.
The House and the Senate ratified the 13th month pay tax exemption bill before Congress went on a holiday break last December 19.
The measure, which raised the tax exemption ceiling of the 13th month pay and other bonuses from Php30,000 to Php82,000,covers the tax exemption for the 13th month pay, Christmas bonus, and other bonuses received by employees every year.
The measure seeks to exclude the 13th-month pay and other bonuses from the computation of the gross income taxation.
It also allows employees in public and private sector to take home a larger share of their bonuses by 2015.