Tax Exemption Bill - Into Law

Philippines
June 18, 2008 8:50am CST
Philippine President Gloria Macapagal-Arroyo signed yesterday a law that exempts more than half a million minimum wage earners from tax payment and increases the level of personal exemptions and deductions of individual taxpayers. This law exempts minimum-wage workers in the private and public sectors from payment of income tax, and also exempt their holiday pay, overtime pay, and night-shift differential and hazard pay from income tax. Moreover, the new law increases personal exemption of single tax payers from Php 20K to Php 50K, head of the family from Php 25K to Php 50K, and married from Php 32K to Php 50K. The deduction for each qualified dependent (not exceeding four), is increased from Php 8K to Php 25K. However, this measure would cost the government Php 14.25 billion in foregone revenues. To fellow Filipinos here in myLot, what's your view on this new law? Are you happy about it? I'm just worried about the impact of this law in the services that the government could provide to its citizen. I hope we wouldn't get a worse public service because of lack of government funcds.
1 person likes this
5 responses
@posham (1237)
• Philippines
22 Jun 08
i will have to say that i'm for it since taxes is really a big burden for small wage earners like me. it's really a drag back when i try to work 13hrs a day and just see my night diff + overtime go down the drain with taxes.. i have no prolem giving that much to the government if they can assure me that it'll go to the right hands.. but when you see gov't officials pocketing the money, it really frustrates me.. don't worry, the gov't will not ran out of funds or places to get money, the only problem is mishandlind and mismanagement of funds.. if only they can collect taxes right. and be able to get taxes from cronies, etc. if only they can handle our taxes right, then believe me, there'll be no problem.
1 person likes this
• Philippines
22 Jun 08
Wow, 13 hours of work per day and your on night shift? That's quite posham. Anyway, this new law works to your advantage now and your night differential and overtimes are exempted from taxes as well. Thanks for sharing your opinion on this topic. Have a great day!
@posham (1237)
• Philippines
22 Jun 08
yeah.. well, i used o work that long but now there's no more available overtime.. such a drag.. but that's alright, i'll think of some other things to do.. harhar...
@rsa101 (16765)
• Quezon City, Philippines
18 Jun 08
Its just about time that these has to be passed. I really think with the current economic situation it would somehow relief some of the net pay we give to BIR.
• Philippines
18 Jun 08
But don't you think that this relief will just be temporary of prices would still continue to soar, besides our inflation now here in the Philippines in on the double digit already. How about the services that we get from the government if it lacks funds to support their projects? I hope the services we get don't get worse. We're really in a bad situation right now. Thanks for sharing your view on this discussion rsa. I appreciate it.
1 person likes this
@rsa101 (16765)
• Quezon City, Philippines
19 Jun 08
Yes I know this is just a temporary relief for us, but then anything that could help alleviate us the common people to be spared from the heavy taxes we pay would be a good relief. A few extra hundred of peso in your pocket would definitely make a good additional money to help us in our daily needs.
@salonga (27956)
• Philippines
19 Jun 08
I welcome the Tax Exemption Bill. Minimum Wage Earners should really be exempted from paying taxes. The tax exemptions as well is a good news for me because I am one of the beneficiaries. I believe the government will not suffer lack of fund because fund is more than sufficient, the problem is misallocation and corruption. They should also go strict in tax collection because there are many tax evaders out there!
1 person likes this
• Philippines
19 Jun 08
Besides the tax exemption, we could also benefit from the increase in personal tax exemption as well as exemption on our dependents. So we just hope that our leaders would allocate the government budget well and improve the services they provide to us, the citizens and tax payers.
@spyjob (214)
• Philippines
19 Jun 08
This tax exemption bill will give a little relief to some of the workers, but in general I wish that EVAT would totally be out in fuel as this one really have an impact and a domino effect. If the government would minimize their greed, services would not suffer despite a 14B foregone revenues. Anyway, do we feel any government services before this tax exemption bill? Before the implementation of EVAT I remember one of the reasons is to help the government do their projects, infrastructure, and to deliver good services to its citizens. I haven't seen one since its implementation in 2003. what I've seen are numerous corruption and scandal involving huge amounts of taxpayers money. what a sigh!
1 person likes this
• Philippines
19 Jun 08
hi spyjob, yes I agree I have not observed any impact of the EVAT on the services that the government provides us. Tsk...that's because of corruption.
@aseretdd (13736)
• Philippines
19 Jun 08
I think it is just fair to exempt minimum wage earners from paying income tax... we all know that government services do not reach all Filipinos... nor are they being used for the benefit of all... this is like a way to help those who are earning very little cope up with the current economic crisis... the governmnet has other ways of getting the foregone revenues... as long as politicians will not think of their own benefit... but the benefit of the Filipino people...
1 person likes this
• Philippines
19 Jun 08
Hi aseretdd, thanks for sharing your opinion on this topic. This law would really help minimum wage earners to cope with the high prices of commodities right now. And I just hope the government will have permanent solution that will really help us all. Have a great day!