Monday, September 29, 2008 Labor to push for tax break
THE possibility of extending the tax exemption on minimum wage-earners back to January this year is a positive development, said Marianito Ventura, labor representative to the Regional Tripartite Wages and Productivity Board (RTWPB) 7.
Ventura said he will advise all labor unions to meet, discuss the new development and express support for the petition of Sen. Manuel Roxas II.
“The unions will be passing resolutions in support of Roxas and thanking him for this decision,” said Ventura.
Roxas, during a visit to Cebu last Friday, said he will petition the Department of Finance (DOF) and the court to make the tax exemption retroactive to January this year, instead of starting in July.
Should the petition be approved, the BIR would have to refund the withholding taxes collected from January to June this year.
The BIR also recently issued its guidelines to implement an increase in personal exemptions for those earning more than minimum wage. (See table)
Relief
“People are already complaining of the high withholding taxes. With the tax exemption, take-home pay would be bigger. Minimum wage-earners earn little, and then there come the taxes that make salaries even smaller. The tax exemption would greatly help all of us,” said Ventura.
Charles Streegan, management sector representative to the RTWPB 7, agreed it was a welcome development.
“As long as it is for the benefit of the workers, then why not? This is good,” Streegan told Sun.Star Cebu.
But since Roxas has yet to petition the DOF, everybody would still have to “wait and see,” Streegan said.
Streegan said the wage board will meet within the week and possibly discuss Roxas’ petition. But he admitted he was not quite sure how the wage board would affect the petition.
“It is between the Senate and the Department of Finance,” he said.
Meanwhile, former Cebu Chamber of Commerce and Industry (CCCI) president Robert Go said that if the retroaction of the tax exemption law will be moved to January, the government will have a lot of work to do.
“I think getting it moved to January is not impossible, but I believe if they move it to January, there will be a lot of work to be done. Millions of people will have to be repaid,” said Go.
“In the case of the BIR, what has been paid already (the withholding taxes), the BIR would have to refund that,” said Go.
Despite the huge workload of refunding millions of people for their paid taxes for six months, Go said he saw no other hindrance that could stop the tax exemption getting moved to January.
“If the government will decide to move it, then it will be quite possible,” said Go.
Go said that for its part, the private sector will just have to abide with the decision of the government. (EPB)
