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 ]

Roxas bats for ZERO VAT on oil as third pillar of relief package

After the passage of the affordable medicines and tax exemptions law, will the approval of the suspension of the value-added tax (VAT) on oil be next?

This is the fervent hope of Senator Mar Roxas, principal author of the recently enacted measures providing for cheaper medicines and tax exemptions for minimum wage earners.

Roxas, chairman of the Senate committee on trade and commerce, noted that the economy is in danger of slowing down because consumption has been reduced due to high prices.

“To keep the economy moving, we must provide immediate relief to consumers. Otherwise we face a triple whammy of runaway inflation, high unemployment and widespread hunger,” he warned.

“Ngayon, higit na kailangan ng mga mamimili ang pera nila. Sila ang higit na nakakaalam sa kanilang mga pangangailangan, kaya mas mainam na maiwan sa bulsa nila ang perang ito kaysa mapunta pa sa mga leakages sa gobyerno,” he said.

The senator authored Senate Bill No. 1962 which seeks to suspend the 12% VAT on oil to give consumers a much-deserved respite from soaring prices.

Roxas also authored the recently enacted Universally Accessible Cheaper and Quality Medicines Act of 2008 and the Tax Exemption for Minimum Wage Earners Law which was signed by President Arroyo this morning.

The Liberal Party president said he is hoping that his bill calling for the suspension of the 12% VAT on oil would be the third law to be included in the package of relief measures legislated at this time of crisis.

“They say that good things come in threes. Unfortunately, the administration has limited its options to subsidies for certain sectors. It continues to ignore the fact that a temporary removal of the VAT on oil will be felt directly by each consumer with no cash out from the government,” Roxas added.

The newly-signed Republic Act No. 9504 will provide minimum wage earners in the private sector, as well as government workers with the equivalent of a minimum wage salary, with an additional take-home pay of P34 per day, or P750 per month, by exempting them from income taxes. It also increases the personal exemptions of all individual taxpayers.

Republic Act No. 9502, the Universally Accessible, Cheaper and Quality Medicines Act, was signed last June 6. The law seeks to increase competition in the local pharmaceutical market. It allows the importation of more affordable medicines from abroad, and also supports the development of local generics firms. The law also gives the government the powers to regulate prices when necessary, and strengthens the Bureau of Food and Drugs.

Roxas’ SB 1962, filed last December, would suspend the VAT on oil for six months, after which the executive would be allowed to restore the VAT in full or on a staggered basis.

Tuesday, June 17, 2008 | posted in cheaper medicines bill, e-vat, income tax break, mar roxas, minimum wage, oil, pgma, philippines, president | 0 comments [ More ]

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.

Friday, May 30, 2008 | posted in e-vat, food crisis, mar roxas, minimum wage, oil, pgma, philippines, president | 2 comments [ More ]

Roxas lauds House action on Income Tax break bill

Senator Mar Roxas commended the House of Representatives for rectifying its quorum woes in order to pass a bill giving tax relief to low-wage earners, and said he would push for this to be taken up by the Senate at the soonest possible time.

"We welcome the approval of the House version. I am confident that we will be able to reconcile our versions of the measure. Both the Senate and the House have the same thing in mind—to provide immediate relief for our workers," he said.

"Kahit hindi ito nakaabot sa Labor Day, nananatili itong prayoridad para bigyang ginhawa ang ating mga manggagawa, sa panahong napakataas ang presyo ng mga bilihin," he stressed.

Roxas filed Senate Bill No. 103 in June last year to exempt minimum wage earners from income taxes. Policymakers agreed to prioritize such measure in the Legislative Executive Development Advisory Council (LEDAC) last April 22, and was targeted to be passed by May 1, Labor Day. He noted that the Constitution requires that all tax measures must emanate from the House.

"This measure has been promised to workers in the past Labor Day celebrations. Now that this tax relief is forthcoming, our workers can now focus on the work of the regional wage boards and the grant of non-wage benefits," he added.

The Liberal Party President noted that while both bills sought to increase take-home pay for low wage earners, the House had adopted a different methodology by increasing personal exemptions for employees in the private sector, while Roxas' bill removes the income tax altogether for minimum wagers.

Wednesday, May 14, 2008 | posted in income tax break, mar roxas, minimum wage, pgma, philippines, president, prospero nograles | 0 comments [ More ]

Roxas pushes for immediate passage of minimum wage tax break

Senator Mar Roxas said he will push for the immediate passage of his bill to exempt minimum wage earners from paying income taxes when Congress resumes session in April, saying that workers need relief in the face of socioeconomic pressures.

He said he supports the call of the Trade Union Congress of the Philippines urging Congress to pass the bill as part of the upcoming Labor Day celebration on May 1. The Liberal Party President, however, added that it also takes political will on the part of the administration to have this bill passed.

“Paparating na naman ang Labor Day, pero itong isang pangako ng administrasyon sa ating mga manggagawa ay hindi pa rin napatutupad. Patuloy pa rin ba silang aasa sa wala, sa gitna ng kagipitan?” he said.

“Giving a tax break to minimum wage earners is imperative in light of the increasing prices of fuel and of food. It will only take a determined push from the President to get the ball rolling in the administration-dominated House,” he said, noting that all tax measures should emanate from the House of Representatives, as required by the Constitution.

Roxas earlier filed Senate Bill No. 103 seeking to exempt from income tax all minimum wage earners and all government employees from Salary Grades 1 to 3. The Senate Committee on Ways and Means has tackled the bill, but is awaiting House action before it could transmit its report to plenary.

As the TUCP noted, the bill would exempt about half a million workers from paying income taxes. Although the Finance department has estimated a revenue impact of P951 million, Roxas said this would be outweighed by the increased spending and savings among minimum wage earners.

“Sa panahon ngayon na pataas nang pataas ang presyo ng bigas, langis at iba pang mga mahahalagang produkto, ito ay isang kongkretong solusyon na magbibigay kaginhawaan sa ating mga manggagawa,” he said.

Wednesday, April 2, 2008 | posted in food crisis, mar roxas, minimum wage, oil, pgma, philippines, president | 1 comments [ More ]