The Bureau of Internal Revenue (BIR) said it would lose about P28 billion if the law granting tax exemptions to minimum wage earners and middle-income employees is applied retroactively or starting January this year.
BIR Commissioner Lilian Hefti said the law should be applied starting July 2008 or after President Arroyo signed it last June.
Republic Act 9504 increases the tax exemptions for minimum wage earners and increases the tax exemptions for middle-income earners.
Lawmakers want the government to implement the law retroactively or starting January 2008 but the BIR wants the law applied only starting July 2008.
Otherwise, Hefti said, the agency would not be able to meet its revenue target for the year of P845 billion.
Hefti said the BIR and the Department of Finance (DOF) have yet to finalize the implementing rules and regulations (IRR) of the law and decide on the starting date of the law’s implementation.
“There’s no meeting of the minds yet,” Hefti said, adding that the tax bureau and the Finance department would be consulting with government lawyers to help them decide.
Hefti said if the law’s implementation is made retroactive to July 2008, the BIR would lose only roughly P14 billion and not P28 billion.