Press Release
June 20, 2008

TAX EXEMPTION IS A PAIN RELIEVER, MEET THE CURE- REVILLA

Senator Bong Revilla urged the government to find more ways to fully ease the economic burden on ordinary workers as a follow-up measure to the tax exemption on minimum wage earners.

"There are problems that can not be solved by one solution and these include the fight of the ordinary workers against the escalating prices of goods and services. The tax exemption will surely improve the living condition of our minimum wage earners but we should not stop there," said Revilla, one of the co-authors and co-sponsors of Republic Act 9504 that would exempt minimum wage earners from paying income tax and increasing personal exemptions for other employees.

RA 9504 which amend Sections 22, 24, 34, 35, 51, and 79 of RA 8424 or the National Internal Revenue Code of 1997, was signed into law last Tuesday. Revilla hailed both chambers of Congress for passing the said measure.

"RA 9504 is not a product of one or two lawmakers. We must commend not only the authors and sponsors, but the Senate and the House of Representatives as a whole for enacting a timely legislative measure," he clarified.

The lawmaker stressed that there must be succeeding efforts to address the still on-going calls of ordinary workers for a wage increase. "The tax exemption would provide relief but it is not the cure. The government and ordinary workers should come up with other efforts for economic security," he pointed out.

For his part, Revilla vowed to continue pushing for the P125 daily across-the-board wage increase to further ease the economic burden of ordinary workers in the country. He earlier filed Senate Bill No. 2179 that would provide a P125 daily across-the-board increase in the salary rates of employees and workers in the private sector.

In pushing for a legislated wage hike, he pointed out that it is the policy of the Senate to alleviate the living conditions of ordinary Filipinos, including the working class, by ensuring the right of labor in the fruits of production

It could be recalled that the senator challenged employers to agree to a P125 daily across-the-board wage increase or be obliged to double the payment of benefits of their personnel.

"I believe a gradual P125 daily wage increase is a win-win solution. The economy will further suffer if there a will be a mass lay-off and company closure due to an outright salary augmentation. All we have to do is to compel the employers to comply so we are imposing heavier penalties on the violators," Revilla said.

Under SB2179, all employers in the private sector, whether agricultural or non-agricultural, and regardless of capitalization and number of employees, shall pay their workers P125 daily across-the-board wage increase. The increase shall be paid in the following manner: Forty-five pesos a day upon the effectivity of the measure; an additional forty pesos a day a year thereafter; and the remaining amount on the third year.

Defying employers shall be ordered to pay an amount equivalent to double the unpaid benefits owing to their employees. The payment of indemnity shall not absolve the employer from criminal liability which includes a fine from twenty-five thousand pesos to one hundred thousand pesos and imprisonment from two to four years.

News Latest News Feed