Roxas to BIR: Don't be a scrooge, give full-year tax relief

Liberal President Senator Mar Roxas today called on the Department of Finance not to be a Scrooge and heed minimum wage workers’ pleas for a full-year income tax exemption, pursuant to Republic Act No. 9504.

“Dapat lang na ibigay na itong tax exemption. Kahit kakarampot ay maaaring magdagdag ng kaunti para sa darating na Pasko para sa kanila (This tax exemption must be given now. Even if it’s a small amount, it would help in the expenses this coming Christmas),” he said.

The Cebu city council issued a resolution last month urging the DoF and the Bureau of Internal Revenue to retroactively implement the tax exemption for minimum wage earners, a copy of which was furnished to Roxas, who was commended for pushing the tax relief measure..

“In these hard times, we ought to do everything we can to be able to make life better and easier for our people,” Roxas said in a reply addressed to Hilario Davide III, Acting Presiding Officer of the Sangguniang Panglungsod of the City of Cebu.

“Kapag ‘di naibigay ang full-year tax exemption, P5,000 din ang kinuha ng gobyerno sa mga minimum wage earners. Maliit pero kinuha pa rin ng gobyerno (If the tax exemption will not be given, the government’s taking P5,000 away from the minimum wage earners. A small amount, but the government still took it),” he said.

Roxas has already filed with the Supreme Court a petition to compel the DoF and BIR to exempt minimum wage earners from taxes for income earned since January 1 of this year, and not only since July 6, which is when the law was made effective. He noted that the Supreme Court had previously ruled in Umali vs. Estanislao that an older tax exemption law, RA 7167, covered income taxes from the start of 1991, even though this became effective only on January 30, 1992.

Saturday, November 22, 2008 | posted in bir, dof, hilario davide iii, income tax break, mar roxas, minimum wage, philippines, supreme court | 0 comments [ More ]

Roxas, TUCP ask SC to junk "half-baked" tax exemption

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.

Thursday, October 2, 2008 | posted in bir, dof, mar roxas, margarito teves, minimum wage, philippines, president, supreme court, tucp | 1 comments [ More ]

Roxas: Implement minimum wage tax exemption now

Liberal President Senator Mar Roxas chided the government for deciding to limit the application of the newly-passed tax exemption law for only half of this year.

This, as he said that nothing stops the government from applying Republic Act No. 9504—which exempts minimum wage earners from income taxes and increases the personal exemptions of other workers—from January 1, 2008 and not just from July 6, the date of effectivity of the law.

“The government promised this law years back and they even pointed the finger at Congress for the delays. And now they decided amongst themselves to make a half-hearted application of the law,” he said.

“Dapat ipaliwanag ng Pangulo sa taumbayan—lalo na sa mga manggagawa—kung bakit nito hinayaan ang DOF na i-apply lang sa kalahating taon itong tax exemption, gayong puwede namang magpairal ng political will at ipatupad ito sa buong 2008 na,” he said.

“Ano ba ang mas mahalaga sa gobyerno? Ang mabigyan ng ginhawa ang mga manggagawa sa kabila ng pagtaas ng presyo ng mga bilihin at iba pang krisis na hinaharap nila? O ang protektahan ang kita nito?” he added.

Roxas also said the government must explain how the new law will be implemented vis-à-vis Revenue Regulation 01-2006, which exempted minimum wage earners from the collection of withholding taxes since January 2006.

“Sa ilalim ng IRR ng DOF, ang sahod ng mga manggagawa magmula sa Hulyo hanggang sa Disyembre ngayong taon ang hindi na papatawan ng buwis, at kailangang magbayad pa rin ng buwis para sa sahod nila magmula sa Enero hanggang Hunyo. Pero sa kabila nito, hindi na pala kinakaltasan ang mga manggagawa ng withholding tax,” he explained.

“Ang ibig sabihin ba nito, maglalabas pang muli ang mga manggagawa ng pera nila para magbayad ng buwis, gayong pinaasa sila noon pa na hindi na ito kokolektahin pa?,” he stressed.

Roxas however welcomed an earlier proposal to require employers to submit a quarterly list of minimum wage earners eligible for tax exemption was scrapped. “Salamat at kahit papaano’y nakinig ang DoF sa atin sa probisyong ito, na magpapatagal pa sa proseso at magdadagdag lang sa burukrasya,” he said.

“Huwag nating kalimutan na ang batas na ito ay para sa ginhawa ng mga mahihirap. Our workers should be able to enjoy benefits immediately, and policy must be geared towards their welfare,” he added.

Thursday, September 25, 2008 | posted in dof, mar roxas, margarito teves, minimum wage, pgma, philippines, president | 0 comments [ More ]