Solon wants Pinoy boxers' fight earnings exempt from taxes

A lawmaker wants Filipino boxers, including ring icon Manny Pacquiao, to be exempt from paying taxes on their fight earnings, just like their American counterparts. 

 

House Bill 5234 or the proposed Filipino Boxers’ Benefits and Protection Act filed by Northern Samar Rep. Emil Ong seeks to exempt fighters from paying taxes for their earnings inside the ring.

 

The measure, now pending at the Committee on Ways and Means chaired by Marikina City Rep. Miro Quimbo, provides for the exemption of Filipino boxers from paying taxes out of the income derived from prizes and money benefits from winnings in boxing competition. The tax exemption, however, does not cover income derived from commercial advertisements or endorsements from products of the Filipino boxers.

 

Ong said boxers, who usually earn income only on a per-fight basis, deserve to be granted an exemption from paying taxes on their fight earnings as an incentive.

 

"As distinguished from other taxpayers, Filipino boxers only enjoy the prize of their winnings for a limited period of time. Hence, the remainder of their income from winnings after taxes is what is left for a lifetime support for the boxer and his family," read the bill's explanatory note.

 

Ong described boxing as a lucrative profession that not only benefits the boxer, but also locals and the economy of the host country. However, he said the fighter in the ring deserves more credit for risking their lives to bring honor to the country.

 

"Boxers are the principal players of boxing as a sports event. It is worthy to recognize their role through legislation that will exempt them from paying takes out of their prizes from winnings and money benefits derived from winning subject to certain exceptions," he said.

 

But Quimbo said it is better to have a universal tax exemption applicable for all athletes, instead of just for boxers. He said Ong's measure must be rationalized relative to other sports since there might be clamor for the same privilege from other athletes soon.

 

"Next thing we know, basketball players will be asking for the same exemption. We do not favor piecemeal tax exemptions," he said in a text message Monday. 

 

Valenzuela Rep. Magtanggol Gunigundo previously filed a bill seeking to grant lifetime tax exemption for Pacquiao, who also serves as representative of Sarangani, in recognition of his achievements in the ring. 

 

Buhay party-list Rep. Lito Atienza also filed another measure last year proposing to exempt Pacquiao from paying taxes on his prize money from fights.

 

Malacañang, however, thumbed down the proposals, saying paying taxes is an obligation of every Filipino citizen. 

 

Pacquiao is currently embroiled in a tiff with the Bureau of Internal Revenue, with the agency filing a P3.2-billion evasion case against the fighter. —JST, GMA News