MANILA, Philippines - Minimum wage earners will enjoy a P10,000 tax exemption from the Bureau of Internal Revenue (BIR) starting Jan. 1 so they can have more money to spend for other purposes, Malacañang announced yesterday.
This was after President Aquino approved the new rules set by the Department of Labor and Employment and Department of Finance, according to Presidential Communications Operations Office Secretary Herminio Coloma Jr.
The new policy will increase the tax exemption for each worker to P104,225 from the current P94,225.
The BIR estimates that about P17 million will be lost to foregone government revenues in light of the new tax exemption.
Coloma noted that the tax exemption is just one of the benefits that the Aquino administration wanted to give minimum wage earners. It is also part of the package of benefits granted to workers under the collective bargaining agreement and productivity incentive schemes.
“This is the fruit of the continuous dialogue between President Aquino and labor groups this 2014. The new policy will be implemented in January through a revenue regulation to be released by the BIR,” he added in Filipino.