Nation

Economic Managers withdraw proposed plan to tax 13th month pay, bonuses

"Wonderful Job" for President Benigno Aquino III, said Sen Sonny Angara. (Screen grabbed from internet)
 Sen Sonny Angara (Screen grabbed from internet)

Malacanang’s economic managers have decided to withdraw their plan to impose tax on the 13th month pay, Christmas bonus and other bonuses given to employees.

According to Senator Sonny Angara, chairman of the committee on ways and means, in the revised tax reform package of the Department of Finance, they will no longer remove the tax exemption on the 13th month pay, and bonus that are below Php82,000.

Senator Angara added that the administration took into consideration the sentiment of the public regarding the said proposal.

Prior to this, DOF tried to impose tax on the 13th month pay and other bonuses to recover the money that the government will be losing once they lessen the income tax for employees and workers.

Meanwhile, Angara promised that the Senate will not rush the said bill that focuses on excise tax because it need thorough review and consultation.

 

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