MORE local tourists and their families may take opportunity to travel due to increases of tax exemption for the 13th month pay and bonuses.
The Department of Tourism (DOT) expects more tourists to visit Western Visayas as Republic Act 10653 takes effect this year.
Iloilo City Representative Jerry Trenas authored House Bill 3670 and a corresponding Senate bill was authored by Senate President Franklin Drilon for President Benigno Aquino III to sign into law early this year.
The new law increases the income tax exemption threshold of 13th month pay and other benefits from P30,000 to P82,000.
DOT Regional Director Helen Catalbas said that RA 10653 is a tourism-oriented law as it provides Filipino families more disposable income that they may opt to spend on travel.
Traveling may now be on the list of expenses for the Filipino families, realizing that they can take home bigger portion of their bonuses with the increase of tax exemption threshold. Before, families would rather spend their money on basic commodities alone, Catalbas said.
Enough funds for family travel will also help promote local products as visitors may have extra cash to buy souvenir items and delicacies available in the area.
However, the threshold amount of P82,000 exemption shall only apply to 13th month pay equivalent to the mandatory one month basic salary of officials and employees of the government, including government-owned or controlled operations, and or private offices; and Christmas bonuses, productivity incentive bonuses, loyalty award, gifts in cash and in kind, and other benefits of similar nature. (LCP/Sunnex)