Press Release
September 9, 2008

ROXAS WANTS FULL, IMMEDIATE
IMPLEMENTATION OF TAX EXEMPTION LAW

Liberal President Senator Mar Roxas today called on Malacanang to stop delaying the full implementation of the law that exempts minimum wage earners from income taxes and raises personal exemptions for other workers.

"Panay pangako na lang ang ibinibigay ng Palasyo sa ating taumbayan.. Matagal nang ipinasa ang tax exemption, pero panay palusot lang ang naririnig natin sa Palasyo," said Roxas, principal author of Republic Act No. 9504, enacted last June 17, that exempted minimum wage earners from income taxes.

"Ang tanong ko at ng taumbayan ay simple lang. Bakit kailangang pahirapan pa ang mga empleyado para mapakinabangan nila ang tax exemption?" he asked.

Roxas said he opposes a plan of the Department of Finance to require companies to submit a list of their employees who earn minimum wage.

This DoF plan would only be an unnecessary layer of bureaucracy that will make it harder for employees to avail of their income tax exemption, the Ilonggo senator said.

"We are needlessly enlarging the bureaucracy by creating these new requirements that will only serve to lengthen the process in order to avail of the exemption," he said.

Roxas also maintained that RA 9504 should apply for the full taxable year, and not - as the DoF maintains - only for taxes July onwards, when the law was made effective, since these are remitted to the government at the end of the year.

"It seems the DoF is intent on collections according to the old law for as long as possible, since it's easier. Instead of working to make the BIR more efficient under the new law, our people continue to be burdened by high taxes on top of high prices," he said.

He also noted that the call for full and immediate implementation of RA 9504 has been echoed by, among other groups, the Tax Management Association of the Philippines, Business Processing Association of the Philippines, Employers Confederation of the Philippines, Management Association of the Philippines, Makati Business Club and the Philippine Chamber of Commerce and Industry.

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