Tax exemption for families caring for children with special needs pushed

MANILA, Philippines - A lawmaker proposed yesterday to provide tax exemptions for families caring for children with special needs.

Rep. Deogracias Ramos Jr. (Sorsogon, 2nd District) said families caring for children with special needs have different expenditures compared to those caring for regular children.

As such, he said, tax exemptions on the different expenses incurred by families with special needs would help ease their financial burden.

Government should help ease the financial burden on families caring for children with special needs by allowing a deduction on a parent or legal guardian’s taxable income.

“We should help children, regardless of any difficulties or differences they may have, to fully realize their potential for development. By allowing a tax deduction on a legal guardian’s taxable income, we help families reduce their expenses and hopefully provide better care,” he remarked.

Under House Bill 3765, a taxpayer caring for a child with a disability will be able to get a tax deduction of P50,000.

According to the proposed measure, the expenses that qualify for a deduction are tuition for a private school; therapy; diagnostic evaluations by a medical professional tutoring; transportation expenses to school or a medical facility; specialized instructional materials.

Ramos, quoting the 2009 Family Income and Expenditure Survey, said that Filipino families earned an average of P206,000 and spent P176,000 on the average.

This translates to an average annual family savings of P31,000 in 2009. On a monthly basis, the reported average income was P17,200 and average expenditure was P14,700, Ramos said in his statement.

In terms of income groups, families in the bottom 30 percent reported an average annual family income of P62,000 while families in the upper 70 percent income group earned an average annual income of P268,000, the survey also showed.

On a monthly basis, the average income of the families in the bottom 30 percent was P5,200 while the upper 70 percent earned an average of P22,300.

Children with a learning disability topped the list of special needs children enrolled in a public elementary school as of 2009, Ramos also said.

A total of 51,296 children were assessed as learning disabled, while the number of intellectually disabled children stood at 13,119. Children who are hearing impaired ranked third with 12,039.

“For school year 2007 to 2008, the number of enrolled children with special needs in public and private elementary schools stood at 92,429. This translates to a 27.6 percent increase compared to school year 2004 to 2005’s total of 79,118. Many children no longer pursue secondary education or stay in elementary schools for an extended period of time,” Ramos said.