ROXAS WELCOMES EXPANDED TAX EXEMPTION
FOR MINIMUM WAGE EARNERS
CITES NEED TO STIMULATE THE ECONOMY, PROTECT THE WORKERS

Senator Mar Roxas welcomed the expansion of his original bill granting income tax exemption to minimum wage earners to include the House proposal increasing personal tax exemptions and expanding the coverage of the bill to cover government employees covered by salary grades 1 to 5.

Roxas, author of Senate Bill No. 103, lauded the demonstration of bicameral cooperation to ensure the immediate passage of the bill seeking to exempt minimum wage earners from income taxes.

"Kailangang protektahan natin ang mga manggagawa at ang kanilang mga pamilya sa delubyo ng mataas na presyo ng pagkain, langis at iba pang pangangailangan. Ngayon ang pinakamainam na pagkakataon para gawin ito (We must protect our workers and their families from the deluge of high prices of food, oil and other needs. Now is the best time to do this)," he said.

"This proposed law will help stimulate the economy by allowing our workers to keep more money in their pockets. It comes at a time when prices of rice, food, and oil have gone through the roof," he said.

"I look forward to bicameral discussions with the House on this bill. Clearly, we are on the same track in seeking ways to help our workers cope with galloping prices," he said.

The substitute bill prepared by the Senate Ways and Means Committee seeks to exempt all minimum wage earners--workers in the private sector receiving the statutory minimum wage set by the wage boards--and government employees classified under salary grades one to five from income taxes.

Also to be exempt from the payment of income taxes are their holiday pay, overtime pay, night shift differential pay, and hazard pay. They will also be exempt from the yearly filing of income tax returns.

The bill also increases the personal exemption of each taxpayer to P50,000, regardless of whether he or she is single or married. The additional exemption for each dependent up to four (4) was also increased to P25,000 from P8,000.