MANILA (Mabuhay) – A proposed law seeking to increase the tax exemption cap for the 13th month pay, Christmas bonus and other benefits will lead to billions of pesos in losses for the government, according to the Bureau of Internal Revenue.
Internal Revenue Commissioner Kim Henares thumbed down the proposal of Senate president pro-tempore Ralph Recto which aims to raise the tax exemption for bonuses to P75,000 from the current P30,000.
“Kung tataasan to whatever amount mababawasan ang buwis na makokolekta kung mababawas ay ilang bilyon, san natin kukinin ang ilang bilyon na yun? Dapat may panukalang batas san mo kukunin,” she told DZMM.
Henares noted the government has to find new sources of revenues to make up for the losses from the tax exemption.
Recto has filed Senate Bill No. 256, which seeks to increase the cap to P75,000 from the current P30,000. Any amount in excess is already subject to the Tax Code.
“We owe it to the people to amend laws that tend to be more repressive rather than be beneficial to the people. In this bill, we intend to breathe life again to the spirit of the law that, during the time of its passage, intended to allow the people to enjoy more of their hard-earned money,” Recto said. (MNS)