Senate Pro Tempore Ralph Recto. INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE
MANILA, Philippines — Senate Pro Tempore Ralph Recto disclosed on Thursday an alleged “request” by the Department of Finance not to implement the proposed higher tax exemption cap for workers’ bonuses this year.
The proposed measure that would raise the tax exemption cap to P82,000 from the current P30,000 was already passed this week by the Senate on second reading, but it suspended its deliberations to pave the way for the proposed 2015 national budget.
Senate President Franklin Drilon said the Senate would pass the higher exemption cap measure on third and final reading on the first week of December this year.
“Sigurado by 2015 ay iyan ay magiging batas na at sa bonuses at benefits sa 2015 ay siguradong tataas ang tax exemption,” Drilon said in a radio interview.
But even if Congress approves the measure this year, Recto said, it may not be implemented immediately because of the executive’s request to wait until next year.
“Kung hindi ako nagkakamali, there’s a request from the executive na kung maaari wag this year at next year na,” Recto, one of the authors of the measure, told reporters in an interview.
Asked who made such request, the senator said: “I think the Finance Department naturally kasi may mga target sila this year e so ok lang siguro kaya maliwanag ang affectivity nito ay next year na. Kaysa naman ipasa mo ngayon baka i-veto pa. E di might as well next year na kung ganun din any mangyayari.”
He said he was willing to put in the measure that it should be implemented immediately but said, “there seems to be a request.”
“Ganun talaga. Part of the compromise yan. At least ang kapalit noon itinaas natin from P75,000 to P82,000,” he said, referring to the original proposal of the measure to raise the cap to only to P75,000 but he proposed an amendment to further raise it to P82,00
Despite the request, Recto was confident that President Benigno Aquino III will sign the measure into law once it is approved by Congress.