Senate may pass proposed P75K tax-free Christmas bonus before yearend

MANILA, Philippines - A bill raising the tax exemption limit on an individual's 13th month pay, Christmas bonus and other work benefits will be approved before the year ends, Senate President Franklin Drilon announced Tuesday.

 

A counterpart of the said bill in the House of Representatives was relayed to the Senate last September.

 

READ: Congress wants work bonuses up to P75k exempted from tax

 

"In the meeting we had with the House leadership, we have resolved that the tax exemption limit on 13th month pay and other benefits should have the Congress' approval before the year ends. This bill has already the lawmakers' thumbs up, so it's possible that we can pass it this year," Drilon said.

 

The Senate Committee on Ways and Means will schedule plenary debates regarding the proposed measure once it is laid on the floor, Drilon said, emphasizing the need to address the concerns regarding the bill's effects.

 

"What we are more concerned about is how we can help our millions of workers who are struggling from day to day to cope with the effects of inflation. The exemplary actions of our workers, for instance, our teachers, cops and soldiers deserve more support from the government," the Senate President said.

 

The proposed measure increases the current imposed tax exemption limit of P30,000 to P75,000.

 

The Department of Finance opposes the measure, noting that it will deprive the government of billions of taxes.

 

"The estimate is between P40 billion and P60 billion, that is equivalent to our CCT (conditional cash transfers to the poor) program, which is P62 billion," Finance Secretary Cesar Purisima said.

 

RELATED: P70,000 tax-free bonus still not certain despite House approval