Palace not keen on giving tax-free bonuses to workers

Malacañang on Monday nixed a proposal from an administration senator to give tax-free bonuses to workers as part of the government's non-wage package for Labor Day. Citing figures from the Bureau of Internal Revenue (BIR), presidential spokesperson Edwin Lacierda said the government may lose up to P60 billion if it agrees to Senator Ralph Recto's proposal to scrap taxes on bonuses and overtime pay. "These revenues will equate to lost revenues for application on our social programs," Lacierda said at a press briefing on Monday afternoon. He added that under Republic Act 8424 or the Tax Reform Act of 1997, bonuses of up to P30,000 are already tax-exempt. Earlier in the day, Recto proposed that the Palace include tax exemptions on bonuses and overtime pay to the non-wage benefits package the government is considering to give workers for Labor Day. "If the working Juan de la Cruz can't expect a raft of wage-related benefits on his special day, exempting their bonuses and overtime pay from taxers would be a welcome relief," the senator said. Labor chief Rosalinda Baldoz earlier said that the government cannot grant some labor groups' request for a wage hike on Labor Day. Lacierda further said that it is up to the legislative department if it deems necessary to amend the country's tax laws based on Recto's proposal. "Bahala na po ang Kongreso kung sa tingin po nila ay ito pa ay isang magandang hakbang," the presidential spokesperson said. President Benigno Aquino III is set to meet on Tuesday with representatives from the labor sector to discuss the government's non-wage benefits package for this year's Labor Day. — BM, GMA News