Hearing on raising tax exemption ceiling for 13th month pay set

MANILA, Philippines - The Senate Ways and Means Committee is holding a public hearing on Tuesday regarding a suggestion to raise the tax exemption ceiling for the 13th month pay and other employee benefits.

Committee Chair Juan Edgardo Angara will preside the hearing where government employees are expected to raise taxation issues.

The current law provides that the current 13th month pay and other benfits not exceeding P30,000 will not be taxed. A proposed measure, on the other hand, seeks to raise the tax exemption ceiling to P75,000.

Angara said the current ceiling was based on a law enacted two decades ago when the basic salary was at P2,800.

"We may not complete the legislative process for this proposed measure in time for this year's release of bonuses but may this serve as a glimmer of hope for our hardworking Filipinos that in the future Christmas seasons, they would enjoy more of their hard-earned money," Angara said.

Joining the public hearing are representatives from the Department of Finance, Departmen of Labor and Employment, Department of Budget and Management, Bureau of Internal Revenue and the National Economic and Development Authority.

Representatives from the National Tax Research Center, Tax Management Association of the Philippines, Employers Confederation of the Philippines, Trade Union Confederation of the Philippines, Confederation for Unity, Recognition and Advancement of Government Employees were also invited.