Senate thumbs down more tax breaks for people with senior citizen dependents

Voting 7-2, the Senate on Thursday night rejected the motion of Senator Risa Hontiveros to put additional income tax exemptions for individuals with at least two senior citizen dependents.

Hontiveros proposed an additional exemption of P25,000 for each senior citizen, not exceeding two, residing in the same household with the taxpayer.

"The rationale for this is large households or multi-generational households are adversely affected by indirect taxes of the TRAIN bill," she said.

Senator Sonny Angara, the sponsor of the Senate version of the first package of the tax reform bill, opposed Hontiveros's proposal saying the increased personal income tax exemption to P250,000 should be enough to cover senior citizen dependents.

"We could accept that but based on the P150,000 exemption," Angara said.

The Senate on Wednesday increased the personal income tax exemption to P250,000, essentially retaining the original proposal of the Department of Finance (DOF) and the House of Representatives under the first package of the tax reform bill.

The Senate ways and means committee initially reduced the personal income tax exemption, with only the first P150,000 annual income exempted from tax.

The Senate version of the tax reform proposal allows an additional exemption of P25,000 for each dependent or children of the taxpayer not exceeding four.

Angara said a better way to target senior citizens is through subsidies, which are already earmarked in the Senate version of the tax reform measure.

The proposed first package of the tax reform measure aims to lower income taxes while limiting value-added tax exemptions, adjusting excise taxes on oil and automobiles, and imposing new taxes on sugar- sweetened beverages. —JST, GMA News