Two senators oppose tax exempt cover for Pacquiao earnings from Mayweather bout

At least two senators are opposing the proposed tax exemption for Sarangani Rep. and boxing champ Manny Pacquiao earnings from his world welterweight unification fight against US boxer Floyd Mayweather on May 2 (May 3 in the Philippines).

 

Senator Francis Escudero, chairman of the finance committee, on Monday said he would instead push for decreasing the tax rate for low income wage earners.

 

“I am against it. I would rather work for lowering tax rates for low income wage earners. They need it more. Besides we cannot exempt him from the taxes he will pay in the US,” he said in a text message to GMA News Online.

 

Senator Ralph Recto noted the approval of a bill is not necessary as the US Internal Revenue Service (IRS) will automatically the deduct taxes from Pacquiao’s earnings.

 

“No need for tax exemption because taxes he will pay to the IRS on his income from the fight will be credited here in the Philippines by the BIR,” he said in a separate text message to reporters.

 

“It’s a matter of documentation,” Recto added.

 

For his part,  Senator Juan Edgardo Angara, chairman of the ways and means committee, said he was open to the proposal.

 

“We will consider it, once filed, and can conduct a hearing. Lahat ng tax exemption pinag-a-aralan dapat nang mabuti dahil pribilehiyo 'yan at may mawawalang pang-gastos ang gobyerno, kaya't pinagaaralan muna lahat bago ibigay,” he said in a statement.

 

A tax exemption would be a great recognition for the Philippine boxing hero, he added.

 

“Maganda ang nilalayon ng panukala ni Senator Koko na kilalanin man lang ng gobyerno ang karangalan at katanyagan na ibinigay ni Manny sa bansa natin sa mga nakalipas na taon. Palagay ko kulang tayo sa pagkilala sa kaniyang kontribusyon,” he said.

 

Last week, Senator Aquilino ‘Koko’ Pimentel III said he will file a bill seeking to grant special tax exemption for Pacquiao in an effort to inspire the boxer in his bout against Mayweather. 

 

"During his training, let us inspire Manny by way of passing a special tax exemption act for this particular fight. Anyway we are not blind that a substantial part of his boxing proceeds goes to the people through Manny’s helping hand," the senator said. – VS, GMA News