Press Release
September 14, 2008

ROXAS: TAX EXEMPTION DELAY
SHOWS PALACE INSENSITIVE TO PEOPLE'S PLIGHT
DEMANDS ANSWERS FROM BIR

Senator Mar Roxas today said Malacañang is being heartless and doing the people wrong by delaying implementation of a recently passed law that exempts minimum wage earners from income taxes.

It only shows the continued insensitivity of the executive branch to the people's plight, he said.

Roxas said the delay was on top of the administration's rejection of his proposal to remove the value-added tax (VAT) on oil products in order to provide relief to people from the continued high prices of oil.

"Hinaharang na nga ang panukala ko na tanggalin na ang VAT sa langis para naman mabawasan ang pahirap sa mga Pilipino, kung ano-ano pang mga gimik ang ginagawa ng gobyerno para hindi matikman agad ng taumbayan itong income tax exemption na itinulak ko sa Kongreso," he said.

"It is heartless and wrong to delay implementation of the tax exemption for minimum wage earners. Sobrang hirap na ng buhay. Naisabatas na ito noong Hunyo pa - bakit ang bagal-bagal ng gobyerno? Kahit sa patalim ay kakapit na ang mga kababayan natin. I will demand a formal answer from the BIR," Roxas said.

Angry at the BIR's draft implementing rules and regulations (IRR) for Republic Act No. 9504, rules that would delay implementation of the minimum wage tax exemption till the 2009 taxable year, Roxas said it is a deliberate move to thwart congressional will to provide economic relief to millions of minimum wage earners particularly at this time of rising prices of basic commodities.

"Ang sagot nga sana sa mahirap na buhay ng maraming Pilipino ngayon ay itong minimum wage tax exemption, pero sa ginawang ito ng BIR ay ipinapakita lang nila na wala silang pakialam ke maghirap man ang mga tao," said Roxas.

He insisted that RA 9504 enacted last June 17 and that exempts minimum wage earners from income taxes is supposed to be implemented in the current tax year, and not in 2009.

"Malinaw naman sa batas na agaran ang pagpapatupad ng minimum wage tax exemption. Ang tanong ko at ng taumbayan ay simple lang. Bakit kailangang pahirapan pa ang mga empleyado para mapakinabangan nila ang tax exemption?" he asked.

Roxas said this and the BIR's imposing of income taxes on sugar cooperatives are among the points that he wants the BIR to explain when the Senate conducts an inquiry.

The Ilonggo senator is convening on Tuesday the Senate Committee on Trade and Commerce to probe continuing high prices of basic commodities amid a rapid decline in prices of oil and other petroleum products in the international market.

"Alam na ng lahat na bumabagsak na ang presyo ng langis at sa totoo lang ay mas mababa na kesa $100 kada bariles simula sa $136 kada bariles mga dalawang buwan ang nakakaraan. Pero bakit ang bagal ng pagbaba ng presyo ng langis dito sa Pilipinas, at bakit ang mga pribadong kumpanya ay hindi rin nagbababa ng presyo?" he asked.

Roxas also reiterated his opposition to a plan of the Department of Finance to require companies to submit a list of their employees who earn minimum wage.

This DoF plan would only be an unnecessary layer of bureaucracy that will make it harder for employees to avail of their income tax exemption, the Ilonggo senator said.

"We are needlessly enlarging the bureaucracy by creating these new requirements that will only serve to lengthen the process in order to avail of the exemption," he said.

News Latest News Feed