P150,000 tax break for all proposed under Senate bill: Angara
Posted at Sep 26 2017 09:58 AM
http://news.abs-cbn.com/
MANILA – Wage earners will get a P150,000 across the board income tax exemption under the Senate’s version of tax reform, the lawmaker who endorsed the measure said Tuesday.
The first P150,000 of the employee’s annual income is tax free, regardless of income bracket, Angara said.
“It’s probably the most generous break given to employees in recent history,” Angara told ANC’s Headstart.
A call center agent who earns P16,136 per month will need to pay P4,557 in annual income tax if the Senate bill is passed into law, compared to P20,576 under the current setup.
The House of Representatives’ version of the measure proposes income tax exemptions for those who earn no more than P250,000.
Angara said that contractual employees have the option to pay a flat rate of 8 percent of their gross income under the Senate measure.
President Rodrigo Duterte assumed office last year with the promise to reform the tax system and ease the burden on the middle class.
Duterte’s economic team is proposing higher taxes on fuel and sugar-sweetened beverages to offset the reduction in income tax rates and help fund a P8-trillion infrastructure program.
