Board mulls increasing 13th month pay-A A +A
Thursday, January 31, 2013
THE Zamboanga City Council urged the Provincial Board of Benguet to support the passage of Senate Bill 2879 of Senator Ralph Recto which raises the 13th month pay of employees.
The Council, which was chaired by Vice Mayor Cesar Iturralde, forwarded a resolution 1063 to the different legislative bodies of the country in order to collect support.
The resolution expresses the support of the City Council to the bill.
However, the Provincial Board of Benguet deferred its action for the committee in charge to study it first.
The bill is entitled “An act increasing the ceiling of the 13th month pay, Christmas bonus and other benefits excluded from the computation of the gross income for the purposes income taxation amending for the purpose section 32 (B) chapter VI of the National Internal Revenue Code of 1997, as amended.”
On the explanatory note of Recto, he said the Revenue Code provided a tax exemption for the 13th month pay, Christmas bonus, and other benefits of the national and local government workers, however he explained the ceiling is up to P30,000 only for the tax exemption which he claims is not applicable today.
He revealed if the benefits reached the ceiling, the excess will form part of an individual’s gross income which is subject to income tax.
The Senator suggested the government should increase the ceiling into P60,000 because the present ceiling does not apply today compared to its enactment as a code during the early years.
Recto hopes the bill will turn into a law saying “the law should always be responsive to the needs of the people. An increase in the ceiling of this particular tax exemption is one of the reliefs the people need during these hard times.”
Published in the Sun.Star Baguio newspaper on February 01, 2013.