Iloilo City Congressman Jerry Treñas today expressed hope that Filipino workers may soon have tax-free Christmas bonuses after the House Committee on Ways and Means endorsed for plenary approval of the consolidated bill to increase the tax exemption cap of the 13th-month pay and other bonuses.
Treñas, author of House Bill 3670 which was approved and consolidated with similar legislative measures, would increase the exemption ceiling on 13th month pay and other bonuses to P70,000 from P30,000. His original proposal raised the tax cap ceiling of 13th month pay and other benefits from P30,000 to P75,000.
Treñas said that he authored the bill in response to the request of Iloilo City Hall employees. He served as mayor of Iloilo City for 9 years prior to becoming the city’s Congressman.
“I’m really glad that the House Committee on Ways and Means finally approved this proposal and hopefully our workers would finally have tax-free bonuses in time for the Christmas holidays. I’m really optimistic we could pass this into law before December,” Treñas said.
He believes that the swift approval of the proposed measure would surely underscore the Aquino administration’s commitment to uplift the lives and the well-being of Filipino workers who could barely afford to make ends meet due to the rising cost of basic commodities.
“Our best tax payers are the employees and workers who have no choice but to pay their monthly taxes through the withholding tax system of the country. Yet they are the ones who are most burdened by the government for even their 13th month pay and other benefits are only exempt from taxes for only up to a certain extent,” Treñas pointed out.
It is time that Congress increase the taxable threshold in order to realize the constitutional mandate to promote the general welfare of the people and to improve their quality of life, declared Treñas.