The House of Representatives is looking to raise the tax-exempt amount of workers’ bonuses to P40,000 up to P75,000, despite warnings from finance officials the revenue loss to the government would be at least P10 billion.
Moves to increase the tax exemption cap on bonuses gained ground in the House of Representatives as another lawmaker filed a similar proposed measure.
Congress will pass a bill increasing the amount of 13th month pay that will be exempted from the income tax from the present P30,000 to P75,000, Senate President Franklin Drilon said on Tuesday.
The government stands to lose as much as P40 billion in revenues if a House bill seeking to raise the tax ceiling exemption of workers is passed, a finance official warned.
The government thumbed down on Tuesday all proposed tax-exemption measures in the Senate, saying this would cost the government P74 billion in revenue losses.
