MANILA, Philippines – Malacañang welcomed the passage by Congress of the bill exempting minimum wage earners from income tax as a measure that would greatly benefit many Filipinos having a hard time coping with rising prices.
Press Secretary Ignacio Bunye said that the bill, to be signed by President Arroyo soon, would benefit the low-income bracket.
Deputy presidential spokesperson Lorelei Fajardo said the bill would be “a buoy for our marginal income families, a breathing spell that will provide additional spending money for our working class.”
Fajardo pointed out that the President has committed to provide non-wage benefits to the people to ease the burden brought about by the rising cost of most basic goods and commodities.
Rice and fuel are two of the basic goods which prices have gone up in the world market.
“We would like to express our gratitude to Congress for their speedy passage of the bill. It proves once again that when Congress puts their mind to their task we can expect immediate and relevant relief and action from them,” Fajardo said.
With the various regional wage boards granting relatively small increases in the minimum wages of the country’s work force, the President has appealed to employers to provide more non-wage benefits to their employees.
Organized labor also welcomed the newly approved tax break for low-income earners, but pressed for the proposed measure granting a P125 legislated wage increase for workers nationwide.
The Partido ng Manggagawa (PM) said workers appreciated the passage of the bill increasing the maximum exemption for families with annual income of not more than P200,000.
“Although it fell short of the demand for a higher tax break, we welcome the approval by both Houses of Congress of the tax bill that would raise the level of exemption for fixed income earners,” PM chairman Renato Magtubo said.
Magtubo noted that the implementation of the newly approved measure would increase the take home pay of low-income workers by at least P34 a day.
However, Magtubo said militant labor groups would continue to push for a higher tax break, P125 legislated wage increase, and other measures providing economic relief for workers.
The group has been pressing for a measure that would exempt from taxes workers earning less than P1,000 a day. – Marvin Sy, Mayen Jaymalin