BY PRINCE GOLEZ
Manila Reporter
MANILA – A very merry Christmas may come early for government employees if the bill seeking to exempt their bonuses from taxes is approved before December.
The House committee on ways and means approved House Bill (HB) 3670 that seeks to increase the tax exemption ceiling on all bonuses to P70,000.
Iloilo City’s Rep. Jerry Treñas introduced HB 3670. His proposal emanated from the request of Iloilo City Hall employees, he said.
Treñas served as city mayor for nine years. He hopes the bill will be passed into law before December “so that all employees will benefit from it.”
Treñas told Panay News increases in the prices of basic commodity and utilities adversely affect the 13th month pay and other benefits of state workers.
The speedy passage of his bill would “uplift the lives and the well-being of Filipino workers who could barely afford to make ends meet,” he stressed.
The Senate, meanwhile, will work on its version of the bill once the House of Representatives passes theirs.
“Hinihintay po namin matapos sila sa Kamara de Representante. Yung po ang sinasabi ng Saligang Batas dahil ‘yan ay parehas na revenue measure. ‘Yan pong 13th month pay tax exemption bill ay naipasa na sa committee level,” said Senate President Franklin Drilon.
The senator, also from Iloilo City, previously expressed support to the measure.
“(Our present law on the tax cap) was passed 20 years ago, and obviously, things have greatly changed, making such figures no longer reflective of current economic realities and thus making it even more difficult for the average Filipino worker to make both ends meet for him and his family,” said Drilon.
Senate Pro Tempore Ralph Recto filed a counterpart bill, Senate Bill No. 256.
The increase in the tax exemption ceiling would translate to a higher takehome pay for employees in the private and government sectors alike, especially during the Christmas season, said Recto.
“We owe it to the people to amend laws that tend to be more repressive rather than be beneficial to the people,” he added.
HB 3670 has been consolidated with similar legislative measures.
Treñas’ original proposal raised the tax cap ceiling of 13th month pay and other benefits from P30,000 to P75,000.
“Our best taxpayers are the employees and workers who have no choice but to pay their monthly taxes through the withholding tax system of the country, yet they are the ones most burdened by the government for even their 13th month pay and other benefits are only exempt from taxes for only up to a certain extent,” Treñas said./PN
