Manila, Philippines – Lower the tax, increase the income of Filipino workers.
This is the goal of Senator Imee Marcos as she filed a proposed measure aiming to reduce the burden faced by Filipinos amid the oil crisis.
Under Senate Bill No. 2005, Marcos pushes for higher tax exemption ceiling and threshold on income, bonus, and other benefits received by Filipino workers.
The measure seeks to increase the income tax exemption cap to P500,000 from the cureent P250,000.
With this, workers who earn lower than P500,000 annually will be exempted from the income tax.
Moreover, the bill also aims to increase the tax exemption ceiling on bonuses, including 13th month pay and other benefits of workers from current P90,000 to P200,000.
Marcos argued that such measure and action is needed to secure higher income for Filipino workers so that they can provide more for their families amid the soaring prices of basic necessities.
LACSON ON CALLS FOR VAT, EXCISE TAX SUSPENSION: MAY AFFECT PH ECONOMY IN LONG-RUN
On the other hand, amid the continous hike in oil prices, the calls to suspend Value Added Tax (VAT) and Excise Tax in petroleum products have also intensified.
The transportation sector appeals that the removal of such tax will slightly ease the burden of high oil prices that they carry.
Last month, President Ferdinand Marcos Jr. signed the bill giving the president emergency powers to suspend or reduce excise tax in petrol products.
The emergency powers may be used once the pil price reaches $80 per barrel in a month.
Senate Pro Tempore Panfilo “Ping” Lacson, however, emphasized the impact of the tax suspension on the country’s economy.
He noted that P200 billion revenues will be lost if excise taxes are suspended, while another P320 billion if VAT is removed.
Lacson further explained that this action needs thorough study as it has an evident impact on the country’s economy in the long run.