Thursday, April 17, 2008 Arroyo orders exemption of workers' rice allowances from taxes
PRESIDENT Gloria Macapagal-Arroyo directed the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) to look into the possible exemption of the rice allowances or subsidies of some employees from taxes.
Arroyo, during the Tripartite Labor Conference in Malacañang Tuesday afternoon, said non-wage benefits like rice allowances should be "exempted from taxes altogether."
She ordered the DOF to work with the BIR on the matter immediately.
Under BIR Regulation 8-2000, only rice allowances or subsidies of up to P1,000 are exempted from tax.
The President, in the said event, also asked the labor unions to help identify areas where the P18.25 per kilo rice from the National Food Authority (NFA) could be sold to ensure that the poor including workers who need it the most would have direct access to the government-subsidized grain.
Among those present were officers and members of the Trade Union of the Philippines (TUCP), the Federation of Free Workers (FFW), and the Philippine Government Employees Association (PGEA), among others.
Representing the government were Vice President Noli de Castro, Labor Secretary Marianito Roque, Trade Secretary Peter Favila, Press Secretary Bunye, Agriculture Secretary Arthur Yap, Budget Secretary Rolando Andaya, Presidential Management Staff (PMS) secretary general Cerge Remonde, and Presidential Chief Legal Counsel Sergio Apostol.
Also present were representatives from the Government Service Insurance System (GSIS), Social Security System (SSS), and Technical Education and Skills Development Authority (Tesda).
The President convened the Tripartite Conference to determine different ways to assist employees -- through wage increase and non-wage benefits -- in light of the rising prices of oil and rice in the world.
The labor secretary said a total of seven issues or areas where the employees could be assisted were discussed during the conference, which included the rice subsidy tax exemption and a possible wage increase.
The other proposals are: the extending income tax exemptions for minimum wage earners through the passage of a bill; the condonation of penalties for housing and salary loans; the expansion of income augmentation program to cover workers in the public sector; accessibility and affordable of government housing programs; and the speedy resolution of labor cases.
Arroyo during the event, ordered Tesda to allot P25 million more in scholarship vouchers for members of the different labor union, which would be on top of the P125 million allotted for the same sector that were released in December 2007.
Of the P125 million that accounted for 25,000 scholarship vouchers, 3,000 vouchers of which amounting to P15 million have already went to TUCP members. The TUCP reported that 62 percent of their members have availed of the vouchers.
The President also assured PGEA that a "special program" for the setting up of a Botika ng Barangay (BnB) version for government employees would be provided under the "income augmentation" issue.
She also reminded the government employees of the 10-percent salary increases that were earlier announced.
As this developed, Arroyo ordered the provision of emergency employment for the youth during the summer months.
The directive was contained under Administrative Order (AO) 223 that was issued in March, which aims to take "concrete actions to address poverty and prices through major livelihood and job initiatives."
Under the directive, emergency the youth employment programs would be implemented in the urban beltway and countryside public works area.
It would be sourced though "both regular infrastructure outlays and the road board funds" and would "be implemented in the April-May summer construction period. Beside wages, beneficiaries shall be given some quantity of rice." (JMR/Sunnex)
