More tax exemption for elderly sought

MANILA, Philippines - A Baguio City legislator seeks for an additional exemption for senior citizens who are still working in determining their income tax.

Rep. Nicasio Aliping Jr. said equity dictates that  the elderlies who pay income taxes should be allowed to claim additional exemption corresponding to that which can be claimed by those young taxpayers.

"As the taxpayer grows older, the time will come when he can no longer claim any additional exemption for his dependents. From then on, the taxpayer pays higher income taxes sans the additional exemption. This is a burden that he will have to carry even if the taxpayer reaches his senior years," Aliping,  vice chairman of the House committees on higher and technical education, and on North Luzon Growth Quadrangle,  said.

Under Section 35 of the National Internal Revenue Code or Republic Act 8424, Aliping said an individual income taxpayer is allowed to claim additional exemption in the amount of P25,000 for each dependent not exceeding four.

"The claim for additional exemption, however, is allowed only until any of the dependent dies, marries, becomes 21 years old, or becomes gainfully employed," said Aliping said.

In House Bill 2953, Aliping sought to further amend to Section 35 of RA 8424, to allow senior citizens to claim additional exemption in determining income tax.

Section 35 of R.A. pertains to the allowance of personal exemption for individual taxpayer.

The bill now pending at the House committee on ways and means provides for an additional Sub-section E titled "Additional Exemption Allowable to Senior Citizens."

The new sub-section provides that "An individual taxpayer who is a senior citizen shall be entitled to an additional exemption in the amount equal to the maximum additional exemptions allowed for dependents."

The additional exemption shall also  be claimed by only one of the spouses in the case of married individuals, and that the claim for additional exemption shall be divided equally between the spouses in case they are legally separated, the bill provides.