Workers decry tax exemption rules
Mayen Jaymalin
Philippine Star
Workers nationwide won’t accept nothing less than a full-year tax exemption.
The country’s largest labor group sought yesterday the nullification of the guidelines allowing only a six-month tax exemption for the estimated 1.5 million minimum wage earners nationwide.
In a 17-page petition for certiorari, prohibition and mandamus, the Trade Union Congress of the Philippines (TUCP) also asked the Supreme Court to restrain the Bureau of Internal Revenue (BIR) from enforcing the “erroneous” policy.
According to TUCP, the BIR committed grave abuse of discretion in issuing the rules and guidelines for the implementation of the law exempting minimum wage earners from paying taxes.
The TUCP pointed out that the BIR guidelines limits the application of the law to a half-year basis, specifically commencing only on July 6, 2008, which is contrary to the legislative intent to make the law applicable to compensation or income received beginning Jan. 1, 2008.
“Instead of helping our workers, the issuance of R.R. No.10-2008 has necessarily curtailed the supposed complete enjoyment of the benefits they are legally and rightfully entitled to, all to the detriment and prejudice of our minimum wage earners and their families, who are now on the verge of poverty,” TUCP explained.
“The exemptions granted under the law seek to provide relief and additional income to our long-suffering workers. Unfortunately, such spirit of the law was subverted with the issuance of revenue regulations,” TUCP added.
Aside from imposing a six-month tax exemption, the Department of Finance and the BIR guidelines also provide that minimum wage earners receiving ‘other benefits’ exceeding the P30,000 limit shall be taxable.
TUCP said determining as to who is a minimum wage earner is the employee’s basic pay/wage and this does not in any way include ‘other benefits,’ which an employee may receive.
If the erroneous guidelines are implemented, TUCP said, each minimum wage earner stands to lose stands to lose some P4,800 that will provide their families the means to survive amidst the soaring prices of basic commodities.
TUCP president Democrito Mendoza said the workers were dismayed with the issuances of the BIR regulation, which restrict them from enjoying fully the benefits granted by the law.
