SENATOR Sherwin Gatchalian is pushing for a tax reform measure that seeks to boost the take-home pay of Filipino workers by exempting those earning P400,000 or less annually from income tax.
Filed on Tuesday, the proposed “Granting Increase in Take-Home Pay for All Working Filipinos Act” or “Ginhawa Bill,” aims to amend the National Internal Revenue Code of 1997, which currently provides tax exemption for annual incomes up to P250,000.
“We want to raise the exemption threshold to P400,000 a year. That means if your annual income is P400,000 or below, you won’t have to pay income tax,” Gatchalian said during a press briefing.
The bill also proposes to increase the tax-exempt ceiling on bonuses from P90,000 to P150,000.
Additionally, the measure includes tax exemptions for other forms of compensation such as night differentials, overtime pay, hazard pay, holiday pay, and service charges for restaurant workers.
“Hazard pay is given because the job is dangerous. Why should it be taxed? It defeats the purpose,” Gatchalian emphasized.
He said the “Ginhawa Bill” is meant to provide real economic relief to hardworking Filipinos burdened by rising costs and stagnant wages.
