Labor group to BIR, DOF: Return P20B collected from minimum-wage workers

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) on Monday called on the Bureau of Internal Revenue (BIR) and the Department of Finance (DOF) to return P20 billion in taxes that they "unlawfully" collected from minimum-wage workers in 2008.

“Minimum wage earners need these additional cash money which they rightfully own in order to cope with the current incredible rising prices of commodities and surging costs of utilities and services. It’s workers’ blood money," ALU national president Michael Mendoza said in a press release.

"We urge the BIR and DOF to return the money including the legal interests now. Until now, the BIR and DOF have not complied with the High Court order for them to make a cash refund,” he added.

The TUCP had questioned before the Supreme Court the BIR's regulation of collecting taxes from minimum wage earners (MWEs).

The SC favored the labor group and nullified two provisions of BIR Revenue Regulation 10-2008, noting that MWEs should not be taxed because they are exempted from income tax following Republic Act No. 9502, which states that MWEs are exempted from monthly salary tax deduction.

The ALU-TUCP, however, said that the BIR continued to collect taxes on the wages, bonuses and other benefits from millions of MWEs from June to December 2008.

“We cannot understand why the BIR and the DOF is quick to squeeze money from the workers but it takes forever for them to return what they illegally collected. Mahiya naman kayo," Alan Tanjusay, ALU spokesperson, said.

"Those are workers’ blood money. Pinaghirapan yan ng mga manggagawa, ibalik na ninyo," Tanjusay added. — Anna Felicia Bajo/BM, GMA News