Sen. Ralph Recto is once more pushing for the passing of his Senate Bill 2879 which proposes that the tax threshold on Christmas bonuses and 13th month pay be raised from the current level of P30,000 to P60,000.
He states that the current income tax regulation is outdated since it was established during the time when the basic salary of government employees was only P2,800 and the president only earned a salary of P25,000. Now, a government employee earns at least P8,287 and the president’s salary is P120,000.
Recto further explained that if inflation was considered in the equation, the equivalent of P30,000 is only P15,000 based on National Economic Development Authority (NEDA) computations.
Recto’s bill is presently backed by three Regional Development Councils (RDCs), that of Region 2, Region 6 and the NCR. The RDC-NCR is even proposing a higher threshold of P80,000 for tax exemption.
The only cause for delay that the bill has to contend with is the tight schedule that the lawmakers are faced with before the Christmas break. Congress is also rushing to pass the sin tax law and ratify the 2013 national budget, Interaksyon.com reported.
