THE health advocacy group Anakalusugan on Friday welcomed the decision of the Bureau of Internal Revenue to revoke its controversial order imposing tax on health insurance premiums of workers.
Anakalusugan has launched an online petition seeking to rescind Revenue Memorandum Circular (RMC) 50-2018, which states that health card premiums are included in the computation of the P90,000 tax-free privilege on benefits and bonuses of employees.
“HMOs are used by over six million of our working countrymen to augment Philhealth in cases of sickness and medical emergencies. They should not be made to suffer and pay taxes for a benefit they will avail of in such extreme circumstances,” the party-list group said.
“The ‘de minimis’ benefits with a threshold of P90,000 aim to alleviate our working and productive countrymen and adding HMO benefits will downscale whatever comfort they will receive for the work they provide,” added Anakalusugan.
The memorandum was earlier assailed by Senator Sonny Angara, chairperson of the Senate committee on ways and means, who insisted that the health insurance premiums paid by employers for their workers should remain tax-free.
BIR Commissioner Cesar Dulay acknowledged that health insurance premiums are not affected by the Tax Reform for Acceleration and Inclusion (Train) Law.
“The implementation of the pertinent provisions under RMC No. 50-2018 relative to the group health insurance premiums and director’s fees, which were not affected by the provisions of the TRAIN Law, are hereby deleted from RMC 50-2018,” Dulay said.