Large savings for workers with Tax Exemption Bill’s passage, Sen. Roxas says

Senator Mar Roxas said people have plenty of savings to look forward to, with the impending passage of Congress’ bill to exempt minimum wage earners from income taxes.

“Magandang balita ang natanggap natin sa sinang-ayunan na ng House yung Senate version para sa exemption ng mga minimum wage earners, at additional exemptions para sa iba pang salaried workers,” Roxas said during the ‘Kapihan sa Senado’ press conference on Thursday.

The Senator, who is principal author of the tax measure, pointed out the specific savings for people: “Para sa isang minimum wage earner sa Metro Manila na kumikita ng P7,900 per month for 22 days of work, ang dagdag nito sa kanyang take-home pay is about P750, or P34 a day. Ang katumbas nito ay isang kilong bigas bawat araw na madadagdagan sa kanilang kinikita.”

In addition to this, Roxas, the Liberal Party President, noted that all holiday, night differential, hazard and overtime pay were also exempted from income taxes.

“Kaya’t bagamat ang panawagan ng labor sector ay pataasin ang sahod sa pamamagitan nitong panukalang isinulong natin, madadagdagan pa ang take-homepay ng ating mga manggagawa at ng ating mga salaried workers,” he said.

The bill also increases personal exemptions, so that additional savings for an employee earning P455 a day or P10,010 per month would be P472.59 a month or P5,671.02 a year if he or she is single, and P451.09 a month or P5,413.06 a year if he or she is married with four children.

For an employee earning P683 a day or P15,026 a month, additional savings would be P545.26 a month or P6,543.10 a year if he or she is single, and P1,190.52 or P14,286.20 a year if he or she is married with four children.

“These additional savings are on top of the personal exemptions already being given to our workers,” Roxas noted.

“Sa hirap ng buhay ngayon, malaking tulong ang lahat ng ginhawa na mabibigay ng gobyerno, kagaya nitong minimum wage exemption, at kahit yung pagtanggal ng VAT sa produktong petrolyo,” he added.