Sunday, May 11, 2008 Bizmen push for tax exemptions for laborers
WHILE the Mandaue Chamber of Commerce and Industry (MCCI) understands the plight of workers who have to deal with spiraling commodity prices, its members also recognize the difficulties of businesses that have been greatly affected by the strengthening of the peso.
MCCI president Eric Mendoza said they recognize the call for additional compensation for the workers to cope with the price hike of basic items.
“We are proposing the creation of wage incentives and tax benefits to offset losses of some companies in order for them to sustain their businesses. What I’ve observed is that if a business cannot sustain, they will likely retrench workers,” he said in a phone interview.
Exemptions
He said MCCI is calling on the government to hasten the passage of income tax exemptions for minimum wage earners and implement necessary interventions to increase means for earners to cope with increased prices of commodities as well to prosecute those who are taking advantage of the situation.
In a separate interview, Philexport Cebu executive director Fred Escalona disclosed they had a meeting yesterday with the Regional Tripartite Wages and Productivity Board (RTWPB).
“We cannot deny that workers are having a hard time with our present situation. What was agreed during the meeting is that something must be done for these workers by giving them adjustments by way of allowance. But it is for the RTWPB to decide. And there is no specific amount of the allowance agreed yet,” he said.
He said that there will be another meeting among locators of the Mactan Export Processing Zone next week.
“The business sector should also look at labor as an investment. The amount to be agreed upon should also basically maintain Cebu as competitive with other regions,” he said.
‘Too stiff’
Escalona commented that if the businesses grant what labor unions are asking for, the amount will be “too stiff” for businesses to take.
He reiterated that local businesses, especially those involved in exports, are under pressure with the low value of the dollar, the recession in the US and the cooling down of the markets there.
However, he noted that there are still sectors such as the services sector, which are still doing good in the market.
“The export sector, though, is saying that as long as the amount is just and reasonable, they are amenable to wage hike and allowances,” he said. (NRC)
