“Alarming, unlawful”: City Council questions “huge” tax deduction

CEBU, Philippines - Considering it as “highly alarming,” the “huge” withholding tax deduction from the salaries of Cebu City Hall officials and employees is being questioned by the City Council.

 In a privilege speech yesterday during the regular session of the council, Councilor Sisinio Andales said he was surprised to see on his payslip a P20,000 withholding tax deduction. He said his regular withholding tax since 2013 has been P13,000.

“According to the Accounting Office, the increase of the deduction is due to the productivity enhancement incentive which we have not received yet,” he said.

He said the City Accounting Office did not inform the employees and officials on the matter, even just out of courtesy.

“This is highly alarming. This is not pursuant to due process. It is highly illegal and unlawful to increase the withholding tax of employees due to something that we have not received yet,” he said.

With this, the council asked City Accountant Mark Salomon to answer the query. However, Salomon failed to appear yesterday as he was on leave.

Further, the council asked the City Accountant to cease the “huge” deduction.

“Let’s ask the Accounting Office to deduct the withholding tax until we will receive the PEI. Please stop this unlawful and illegal increase of our withholding tax,” Andales said further.

The P77-million PEI is part of the P3.32 billion supplemental budget 1, which will be tackled next week.

Andales said he brought the issue to the legislative body because there are some employees who have not been informed of the deduction yet.

Councilor Noel Wenceslao, for his part, said Andales has a valid observation.

“Withholding tax is an advance payment for your income tax submitted to the BIR (Bureau of Internal Revenue). It’s a valid observation kay nag-una ang deduction bisan og wala pa ‘ta kadawat sa income,” he said.

Councilor Mary Ann de los Santos condemned the act of the City Accounting Office “in the highest form.”

“Out of courtesy, it is very unacceptable and illegal to do such an act,” she said.

Councilor Hanz Abella, for his part, wanted the accounting office to give back what has been deducted from them since the PEI is yet to be received.

Councilor Margarita Osmeña, who presided yesterday’s session, quoted Salomon as saying that the increase in the deduction of the withholding tax is “to soften” the burden when the employees finally receive their PEI, adding that it is a form of installment basis. — (FREEMAN)