Senator Win Gatchalian wants working Filipinos to have more take-home pay by introducing a set of tax exemptions on their salaries, including increasing the income tax exemption on the first ₱400,000 of annual income from the current ₱250,000 and raising the cap on tax-free bonuses to ₱150,000 from ₱90,000.
“The working Filipinos have always carried the economy on their backs, it is time we lend them a hand and help them in their fight for better lives,” Gatchalian said as he filed the bill.
“The working Filipinos have always carried the economy on their backs.”
The measure also seeks removal of taxes on service charges received by service industry employees such as those working in restaurants, taxes on additional compensation received such as overtime pay, holiday pay, night shift differential pay, hazard pay, and taxes on honoraria and allowances of poll workers.
Also, it seeks to implement certain tax reforms such as allowing the additional 50% deduction for micro taxpayers for labor expenses they incurred; allowing discounts given to persons with disability, senior citizens, and solo parents to be used as tax credits; and exemption of micro players from the requirement to withhold taxes.
