Press Release
July 30, 2008


After PGMA laid claim to the effectivity of the tax relief law this month in her SONA, the law's implementing rules and regulations (IRR) has yet to be issued by the Bureau of Internal Revenue, Senator Chiz Escudero today said.

On July 6, RA 9504, which provides for an increase in personal and additional exemptions of individual taxpayers aside from exemption of minimum wage income earners from income tax, took effect.

Escudero, Chairman of the Senate Ways and Means Committee said the tax relief law should already be used by companies in payroll and tax computation from the period July 6-July 31. However, with the delay on the issuance of the IRR, companies are at a loss as to how to go about updating or revising their payroll programs since the rules governing the new law has yet to be received by the companies.

"How can Malacañang parrot around the benefit of the tax relief law when the set of regulations that should guide the employers and the companies is still sitting around, waiting for God knows what before disseminating it for the employer's and company's compliance?"

Escudero said without the IRR, companies who follow protocols before changing the rules are left in a limbo that could cause delays in preparing, certifying and submitting their reports.

"The BIR, who should be spearheading the strict implementation of our tax laws, should be compliant enough to speed up the issuance of the IRR. The Chief Executive has already prided the effectivity of RA 9504 in her SONA but it seems her executives is not that enthusiastic in enforcing it to the letter. The palace should press its revenue arm for the immediate release of the tax relief law's IRR so companies can go about their monthly reports without delays. You open holes for delays and you open holes for corruption"

Escudero further said that the legislative branch has already done its part in providing the much needed relief to workers by passing the law, it is already the executive's turn to do its part what with the president's pledge in her SONA that "to meet the challenge of today, we will feed our people now, not later, and help them get through these hard times."

"The SONA's promises should be true to form and it could begin with just a simple step as to coming out with the IRR of the new tax law so that people can already benefit from this."

News Latest News Feed