CEBU, Philippines - A Party-list representative is seeking an amendment of the National Internal Revenue Code of 1997 to increase the tax exemption for all earners and provide additional exemptions for individuals especially the fringe benefits of the working class.
Rep. Catalina Cabrera-Bagasina of ALE Party-list seeks to lower the taxes paid by the lower class to improve its economic standing.
Bagasina, a member of the House Committee on Labor and Employment, said that this is to provide an equitable relief to a greater number of taxpayers in order to improve the levels of disposable income and increase economic activity.
She believes this will also create a robust environment for business by making them able to compete better in the regional as well as in the global market. At the same time it will ensure that the government is able to provide for the needs of those under its jurisdiction and care.
However, the Alliance of Progressive Labor is pessimistic about it. APL Chairperson Jose Tomongha is almost certain that the proposed bill won’t get anywhere.
Tomongha instead pushed for the abolition of the 12-percent Value Added Tax as a way of lessening the burden of the working class.
Tomongha, who is also one of the labor representatives to the Regional Tripartite Wages and Productivity Board-7, said that the abolition of E-VAT will indirectly help most of the poor.
Through House Bill 6092 or the proposed Tax Reform Act of 2012, Bagasina proposed the amendment, in particular, Section 32(B) of Republic Act 8424, otherwise known as the NIRC of 1997.
The bill sought the amendment of Section 32(B) (7) (E) of the NIRC to exclude from gross income the 13th month pay and other benefits, so that the gross benefits received by officials and employees of public and private entities under this subparagraph shall not exceed P100,000. The law presently provides it shall not exceed P30,000. —(FREEMAN)