Liberal President Senator Mar Roxas and the Trade Union Congress of the Philippines, the Philippines’ biggest union federation, announced today they will contest before the Supreme Court the Bureau of Internal Revenue’s “half-baked” income tax exemption for minimum wage earners, contrary to Congress’ intentions under Republic Act No. 9504, enacted last June 17.
“Binaligtad ng BIR at ng DoF ang intensyon ng mga mambabatas na bigyang ginhawa ang mga manggagawa sa pamamagitan ng income tax exemption. Una, sisimulan lang nila ang exemption sa July 6, imbes na sa simula ng taon. Pangalawa, ang mga minimum wage earner na may ibang sources of income ay hindi na ie-exempt. Bilang principal author nitong batas, ay lalabanan ko ang maling interpretasyon ng ehekutibo dito,” Roxas said.He noted that minimum wage earners would stand to lose about P5,000 in exemptions from January to June, as a result of the erroneous implementing rules and regulations of RA 9504. This is P36 per day, or P792 a month, lost per worker. With about 500,000 minimum wage earners, a full-year exemption would mean a total of P2.5 billion given back to the people to help them cope with the high cost of living.
“Napakalaking savings ang nawawala sa taumbayan gawa nitong half-baked tax exemption na gusto ng BIR at DoF. Katumbas ito ng isang kilong bigas, o tatlong lata ng sardinas bawat araw na mabibili sana ng isang manggagawa para sa kanyang pamilya. Maling-mali, switik at madaya ang pamamaraan ng BIR at DoF para makakolekta ng dagdag na buwis sa mga taong bayan,” he said.Last week, Roxas wrote Finance Secretary Margarito Teves calling for the reconsideration of Revenue Regulations No. 10-2008, particularly the provisions providing for only a half-year exemption for minimum wage earners, and the limited scope of minimum wage earners eligible for the tax relief.
“Hinihintay pa namin ang sagot ng DoF sa aking liham, pero maghahain na tayo ng petisyon sa Korte Suprema para masimula na ang proseso ng pagbasura ng half-baked income tax exemption na gusto ng BIR,” he said.
on October 9, 2008 at 4:49 PM
actually ung income tax table for July-Dec. 2008 is actually wrong. If u compute ung above MWE mas lalaki pa ung tax nila from July to December but the problem is when u annuallized puro tax credits naman aabutin ng mga manggagawa na subject pa din sa income tax. How come they pro rate pero half a year nung new exemption lng ginamit pno naman ung exemption mo from Jan-June 2008. BIR please look at ur table regarding RR 10-2008 specifically Annex D. U should have tried using it first. Its tantamount to not following what is ordered with regards to witholding tax rule that all should be equal by the end of the year. How can that be if employers over pay u by using ur erroneous table.
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