Solon wants 2-month tax holiday for health workers fighting COVID-19

Quezon City Representative Precious Castelo is proposing that health workers who help in the fight against the coronavirus disease 2019 (COVID-19) be granted a tax holiday for two months.

Castelo filed her proposed "Health Workers' Tax Holiday Act of 2020" on Tuesday with the House of Representatives.

The lawmaker said that Congress, in recognition of the danger that health workers face in responding to the COVID-19 crisis, has given them a "special risk allowance" under the Bayanihan to Heal As One Act.

“Understandably so, since they are highly vulnerable to infection, being  directly exposed to the virus as frontline workers. These heroes are willingly putting themselves in harm’s way to safeguard public health,” Castelo said in the explanatory note of the bill.

“Thus, it is but right and just to reward them if only to show the nation’s gratitude and appreciation for their service,” she added.

Under the measure, the income of qualified health workers for the period of March 15 to May 15 this year will not be included in the computation of their income tax, hence making them tax exempt.

Qualified health workers as stated in the measure include those “engaged in health and health-related work, and all persons employed in hospitals, health infirmaries, health centers, rural health units, barangay health stations, clinics, and other health-related establishments, whether public or private, and shall include medical, allied health professional, administrative and support personnel regardless of their employment status.”

The measure also grants the Secretary of Finance the authority to extend the coverage of the tax relief by not more than three months depending on the status of the COVID-19 crisis.

The finance department is also tasked to issue the implementing rules and regulations of the measure.

As of Tuesday, there are a total of 7,958 cases of COVID-19 reported in the Philippines, with 530 deaths and 975 recoveries. — Erwin Colcol/RSJ, GMA News