Arroyo to sign tax exemption bill into law Tuesday

MANILA, Philippines - President Gloria Macapagal Arroyo is set to sign into law Tuesday a measure that will exempt minimum wage earners from paying income tax and increase personal exemptions for other employees. Senator Mar Roxas, principal author of the measure, said the new law will provide relief and additional money to spend for workers, which he said is needed more than ever at this time of continued increases in prices of necessary goods. “We have fought for this for a long time. Many Labor Days have come and gone wherein we fought for this for our workers, and at last, income tax exemption of minimum wage earners is now a law,” he added. Roxas said the tax exemptions would translate into an additional take-home pay of P750 a month for minimum wage earners. “He can now spend this additional money for his needs or for his family’s needs, such as food, medicine and the tuition fee of his children, among other uses,” he said. Roxas also said that all holiday, night differential, hazard and overtime pay will also be tax exempt. The new law also increases personal exemptions for salaried workers. An employee earning P455 per day or P10,010 per month would have an additional take-home pay of P472.59 per month if unmarried, P678.50 per month if head of the family, and P580.92 per month if married with four children. Also, an employee earning P683 per day or P15,026 per month would have an additional take-home pay of P545.26 per month if unmarried; P1,307.18 per month as head of the family; and P1,190.52 per month for those married with four children. - GMANews.TV