Raising tax exemption ceiling of gov’t workers proposed-A A +A
Friday, May 16, 2014
TANGUB CITY, Misamis Occidental – Raising the tax exemption ceiling of government workers to P60,000 from the present P30,000 will improve the economy.
This is because it will increase their take-home pay and their disposable income, as well as encourage desirable activities, such as home ownership and purchase of other necessities, thus increasing money circulation that further drives the economy in their areas.
These reactions came from Atty. Philip T. Tan, the City Mayor, to the proposal of increasing the tax exemption to P60,000, which Malacañang said was under study.
Tan said that since the implementation of Republic Act No. 8424, “An Act Amending the National Internal Revenue Code, As Amended and for Other Purposes,” otherwise known as the “Tax Reform Act of 1997” in January 1998, the purchasing power of the peso has declined.
In region 10, particularly, the peso in 2011 could only buy P0.57-worth of goods and services (base year 2000=100), which was lower than the national average of P0.58.
While the average family income of Filipinos increased by five percent from 1997 to 2009, the average expenditure also increased by 11 percent within the same period, effectively reducing the net savings by 20 percent.
Considering the continuing erosion of the purchasing power of the peso, and anticipating a continuing increase in prices of commodities, increasing the tax exemption ceiling is just fair and reasonable, Tan added. (PIA-10)
Published in the Sun.Star Cagayan de Oro newspaper on May 16, 2014.