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Raising of ceiling for tax exemption on bonuses urged

19 December 2013 No Comment

PRESS RELEASE

18 December 2013

Reference: ACT Teachers Rep. Antonio L. Tinio (09209220817)

 

Raising of ceiling for tax exemption on bonuses urged

A militant legislator has called for an increase of the P30,000 ceiling on the tax exemption of bonuses and incentives.

ACT Teachers Rep. Antonio Tinio said that government needs to urgently respond to this call, as both state and private sector workers nowadays have a dire need for additional finances. “Bukod sa dami ng gastusin na dala ng kapaskuhan ay tinamaan rin ang mga mamamayan ng mga delubyo, kabilang na ang delubyong dulot ng pagtaas ng singil sa kuryente na hindi pinigilan ng gubyerno.”

Tinio filed House Bill 248, entitled An Act Increasing the Ceiling for the Total Exclusion from Gross Income of 13th Month Pay and Other Benefits to P60,000, amending for the Purpose Section 32 (B)(7)€ of the National Internal Revenue Code, last July 1, 2013.

Tinio disputed the opposition of tax chief Kim Henares who recently thumbed down the proposal, saying that government will lose billions of pesos if it implemented a higher tax exemption ceiling.

“The government loses expected revenues because it is unable to collect everything it should collect under the present tax law,” said Tinio, citing BIR’s recent admission that it failed to meet its target collection for January to November by about P51 trillion.

“BIR should not raise revenue shortfall as an excuse to deny relief to billions of wage and salary earners, who have been long demanding for this.” ###

Click here to view HB 248, An Act Increasing the Ceiling for the Total Exclusion from Gross Income of 13th Month Pay and Other Benefits to P60,000

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