Bank employees welcome tax exemption law

MANILA, Philippines -The National Union of Bank Employees (NUBE) has hailed President Benigno S. Aquino III’s signing into law a measure raising the ceiling on tax exemption on bonuses from P30,000 to P82,000. NUBE National president Jose P. Umali Jr. thanked the President for “heeding the workers’ plea for higher take home pay which will now be made possible with this latest measure.”The new law covers the tax exemption for the 13th month pay, Christmas bonuses and other bonuses received by employees every year. This comes on the heels amid objections by the Department of Finance (DOF) and Bureau of Internal Revenue (BIR), warning that this would result in foregone revenue to the tune of P30 billion a year. “It is common knowledge that banks give bonuses higher than P30,000 annually.  This is why NUBE has been hesitant to ask for higher bonuses because it is negated by the ceiling for tax exemption under the old law,” Umali pointed out. “With higher tax exemption, this will somehow provide relief to workers as their purchasing power has been eroded by inflation through the years,” he added.