House leader urges Senate to pass 13th month pay tax exemption bill

MANILA, Philippines - A lawmaker on Tuesday urged the Senate to immediately approve on third and final reading the proposed measure for higher 13th month pay tax exemption.

Marikina City Rep. Romero "Miro" Quimbo called on the Senate to convene the bicameral conference committee after the bill's passage in the Senate to discuss the differing provisions of the House of Representatives and Senate versions.

The House of Representatives passed on third and final reading a tax exemption limit amounting to P70,000 last September 26, while the Senate version is considering to raise the exemption to P82,000.

"My colleagues in the Lower House recognized the importance of this legislation thus the overwhelming support when it was put on the floor. We were also able to pass this measure in record time because the House leadership threw its support behind it," Quimbo said in a statement.

The Marikina City lawmaker and chairman of the House of Representatives Committee on Ways and Means noted that empowering the citizenry with more purchasing power by giving them more cash would stimulate inclusive growth.

The Lower House might consider adjusting the rate that it earlier passed once the bicameral committee convenes to come up a reconciled version for submission to the President, according to Quimbo.

“If we see that the computations for the Senate version are accurate, with merit, and justifiable, then we are willing to accept their cap of P82,000," the lawmaker said.

The Senate approved on second reading Sen. Sonny Angara's proposed measure of raising the current tax exemption limit for workers' 13th month pay of P30,000 to P82,000.

The Department of Finance asked lawmakers to delay approval of said bill, noting that the government will lose P26.8 billion in revenues, according to the Bureau of Internal Revenue.

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