MANILA, Philippines - Sen. Benigno “Bam” Aquino has expressed support for a measure that seeks to raise the tax exemption cap for 13th month pay and other benefits, increasing the take-home pay of private and government workers.
“We support the immediate passage of the measure that increases the taxable threshold for Christmas bonuses from P30,000 to P75,000,” Aquino said in a statement.
He said Filipino workers, who are the foundation of the economy, need a much-deserved tax relief.
“The tax relief is a welcome gift to our workers, who deserve to enjoy a full income during the Christmas season,” Aquino said.
The senator said the move will ultimately benefit the economy as workers will have more money to spend during the holiday season, thus spurring businesses and other livelihood.
Senate President pro-tempore Ralph Recto and Sen. Juan Angara have sponsored the measure before the plenary on Wednesday.
Senate Bill 2437, a consolidation of five Senate bills authored by Angara, Recto and Lito Lapid, intends to raise the ceiling of the tax exemption to P75,000.
Its counterpart measure from the House of Representatives, House Bill 4970, sponsored by Marikina Rep. Miro Quimbo, raises the ceiling to P70,000, a little lower than the Senate version.
Currently, Republic Act 7833 mandates that the 13th month pay and other benefits, such as productivity incentives and Christmas bonuses, not exceeding P30,000 given to both government and private sector employees, are exempted from tax.