Drilon: Congress to raise 13th month tax exemption limit

Press Release

18 February 2014

Refer to: Jeeno Arellano

Both houses of Congress have agreed to increase the tax exemption limit imposed by an outdated law regarding the 13th Month Pay, Christmas bonus and other work benefits, said Senate President Franklin M. Drilon.

The Senate leader said that Senate Bill No. 256, authored by Senate Pro-Tempore Ralph Recto, is one of the most prominent pro-consumer legislation which will receive urgent legislative attention “due to its direct effect to millions of Filipino workers around the country.”

He said the Senate intends to raise the exclusion limit on an individual’s 13^th month pay, Christmas bonus, and other work benefits from income taxation from the current imposed limit of P30, 000 to P75,000.

According to Drilon, both chambers are aware of the need to revisit the antiquated provisions of the law “to provide relief to state and private workers whose purchasing power has been shrinking for years due to inflation, but still have had to deal with the consequences of an outdated law.”

“The law was passed 20 years ago, and obviously, things have greatly changed - making such figures no longer reflective of current economic realities, thus making it even more difficult for the average Filipino worker to make both ends meet for him and his family,” Drilon stressed.

He was referring to Republic Act No. 7833, or the statute that imposed the P30,000 cap on bonuses back in 1994 when the lowest monthly basic salary for government employees (Salary Grade 1, Step 1) was tagged at P2,800, while the President of the Philippines (Salary Grade 33) received P25,000 per month.

Today, the basic salary for government employees is now pegged at P9,000, with the highest salary reaching P 120,000 per month.

“While most of the priority bills right now focus on macroeconomic progress, we have to make sure that necessary bills such as SBN 256 will also receive the required resources and attention towards their passage, for the sake of our countrymen,” he said.

“Our country’s laws must always prioritize the improvement of the living standards of its citizenry. Bills like this are necessary to address the real-time concerns and immediate demands of our people,” he added.

The Senate chief has also said that there are still other measures in the legislative shortlist which aim to improve government policies rallying for the welfare of the common Filipino. ### 

Tagalog version:

Drilon: Limit sa 13^th month tax, luluwagan ng Kongreso

Nagkasundo na ang parehong kapulungan ng Kongreso na aksyunan ang naluma nang batas upang taasan ang limit sa tax exemption sa 13^th Month pay at iba pang bonus, ayon kay Senate President Franklin M. Drilon.

Sinabi ng lider ng Senado na ang Senate Bill No. 256, na akda ni Senate Pro-Tempore Ralph Recto, ay isa sa mga mga nakasalang na “pro-consumer legislation” na agarang tatalakayin ng mga mambabatas, “dahil na rin sa direktang epekto nito sa milyun-milyong Pilipinong trabahador sa buong bansa.”

Aniya, balak ng Senado na taasan ang tax exclusion limit sa 13^th month pay, Christmas bonus, at iba pang work benefits papunta sa P75,000.00 mula sa kasalukuyang P30,000.00.

Ayon din kay Drilon, nauunawaan ng parehong Senado at Kamara na kailangan nang bisitahin muli ang mga lumang probisyon sa batas, “upang bigyang ginhawa ang mga pampubliko at pribadong manggagawa na patuloy na tinatamaan ng pagtaas ng mga bilihin.”   

“Pinasa ang batas na ito mahigit 20 taon na ang nakalipas, at higit sa malamang, ang mga itinakdang bilang ay hindi na sumasalamin sa reyalidad ngayon ng ating ekonomiya - kaya ang  resulta, ang karaniwang Pilipino at ang kanyang pamilya ang sumasalo ng hirap,” sabi ni Drilon.  

Itinuro ng senador ang Republic Act No. 7833, o ang statute na nagtatakdad sa P30,000 cap sa mga bonuses simula noong 1994, kung saan ang pinakamababang monthly basic salary para sa mga empleyado ng gobyerno (Salary Grade 1, Step 1) ay nakapataw sa P2,800, habang ang Presidente ng bansa (Salary Grade 33) ay nakakakuha ng pinakamataas na suweldo – P25,000- kada buwan.

Sa ngayon, ang basic salary ng pinakamababang kawani ng pamahalaan ay P9,000, habang ang pinakamataas na suweldo ay pumapalo sa P120,000 kada buwan.

“Karamihan sa mga priority bills ngayon ay nauukol sa macroeconomic progress ng buong bansa, ngunit kailangan pa rin nating siguraduhing ang mga batas na kinakailangan ng ating mga kababayan tulad ng SBN 256 ay mabibigyan din ng karampatang atensyon para maipasa ang mga ito,” ayon pa sa mambabatas.   

“Nararapat lamang na gawing prayoridad ng mga batas ng ating lipunan ang pamumuhay at kondisyon ng mga mamamayan. Ang mga panukalang batas tulad nito ay mahalaga upang matugunan natin sa gobyerno ang mga  pang-araw araw na pangangailangan ng ating mga kababayan,” iginiit ni Drilon. 

Sinabi pa ng pangulo ng Senado na marami pang mga panukalang batas na kasama sa “legislative shortlist” ang naglalayon na pagtibayin at palakasin pa ang mga polisiya ng pamahalaan na nagsusulong sa kapakanan ng karaniwang Pilipino.###