BIR chief: Govt to lose P43B from higher tax exemption on 13th-month pay

The government will lose P43 billion in revenue if the Senate bill raising the tax exemption cap for 13th month pay and other bonuses is approved, Bureau of Internal Revenue (BIR) chief Kim Henares said Tuesday.

 

At a congressional hearing, Henares opposed Senate Bill 256, authored by Senate President Pro-Tempore Ralph Recto, saying it may reverse economic gains achieved by the Philippines this year.

 

"The reason why maganda ang ekonomiya ay dahil maganda ang koleksyon, pero pasang-awa pa lang tayo. Hindi pa nga tayo very good e, mamimigay pa tayo. E di babagsak tayo. Ano na naman mangyayari sa atin?" Henares said.

 

The BIR chief added that the legislature should be willing to pass new tax measures if it is bent on approving Recto's bill. 

 

"Kung gusto nila mag-exempt, maghanap ng ibang bubuwisan. Papayag ba sila roon?" she said.

 

Recto's bill seeks to raise the tax exemption cap for 13th month pay and other bonuses to P75,000 from the current P30,000.

 

Republic Act 7833, passed in 1994, currently exempts 13th month salaries, bonuses and benefits not exceeding P30,000 from tax.

'Expected'

 

Senator Juan Edgardo Angara, who chairs the Senate ways and means committee deliberating on Recto's bill, said the BIR chief's stand on the measure was expected.

 

"Ayaw nila na maapektuhan yung koleksyon natin," Angara said in an interview after the hearing.

 

He added that while his panel understands Henares's position, he must also consider the rising cost of prices affecting ordinary Filipinos

 

"Ang bigat na ng pasan ng mamamayang Pilipino. Sabay-sabay ang pagtaas ng presyo. Hinahanap natin kung ano ang maibabalik ng lipunan sa kanila, whether in the form of better services o mas babaan ang kanilang buwis na hindi naman mapeperwisyo ang ating ekonomiya," the senator said.

 

Henares, however, said that in the long run, ordinary Filipinos will ultimately bear the brunt of economic loss brought about by any tax exemption.

 

"Ang maapektuhan po rito, ang ordinaryong manggagawa. Sila ho ang mawawalan ng trabaho," the BIR chief said. — RSJ, GMA News