Labor groups split on tax exempt bill

Last Wednesday’s adoption by the House of Representatives of a bill on tax exemption drew mixed reactions from two labor groups.

 According to militant labor union Kilusang Mayo Uno secretary general Elpidio Caterbas, the bill does not substantially help the minimum wage workers.

“Dili makatabang ang bill tungod kay mahal man gihapon ang presyo sa mga palitonon,” he said.

Caterbas also added that the tax exemption bill does not help in further increasing the wages of minimum wage earners.

The chairman of the Alliance of Progressive Labor Joe Tumungha also finds the bill useless since it does not really help the laborers.

“Dili man gihapon klaro ang pagtagad nila sa mga trabahante. Bisan na naa’y tax exemption nawagtang naman ang purchasing power nila kay nagsige man gihapon og increase ang presyo sa commodities”, Tumungha added.

Tumungha also stated that Congress should also increase the deduction in income tax.

On the other hand, the Associated Labor Unions group fully supports the adoption of the said tax exemption bill.

ALU information officer Joy Lim said that if ever the bill is enacted into law it will be a big help to the workers.

“In addition to the wage increase, ALU is also advocating and supporting the bill if ever it will be put into law,” Lim stated.

“Dako-dako na kaayo nga tabang para sa mga workers ang tax exemption. It would be an add-on sa take-home pay sa workers”, she added.

The House adopted the Senate version of a bill exempting families with both spouses working with an annual income of P200,000 and less from paying income taxes.

The tax code at present only allows a P20,000 exemption for unmarried individuals, a P25,000 exemption for a head of family and a P32,000 exemption for each unmarried individual.

The bill has yet to be transmitted to President Gloria Arroyo for signing and enactment into law.  — Ghea N. Sinajon, STC intern/BRP