President Benigno Aquino 3rd turned down appeals from the labor sector for additional tax breaks, saying benefits should be “uniform and equitable” to all sectors.
The President cited Article VI Section 28 of the 1987 Constitution provision that is violated by the said tax break proposal.
“The Constitution guarantees that taxation must be uniform and equitable and that Congress is mandated to evolve a progressive type of taxation,” Aquino stressed.
“So if we give a benefit to a particular sector, we may violate the Constitution,” he added
A coalition of labor groups called Nagkaisa earlier asked Bureau of Internal Revenue (BIR) Commissioner Kim Henares to approve their proposal to cut taxes on minimum wage received by employees as part of Aquino administration overtures for workers on May 1 Labor day.
Philippine Airlines Employees Association president Gerry Rivera said that Nagkaisa asked Henares to impose tax only on the incremental amount of the negotiated minimum wage and not the entire amount itself.
“If union workers, for example, were able to successfully negotiate for a P10 wage increase on top of their minimum of P500 a day, we want only the added P10 to be taxed and not the entire P510,” Rivera said.
“We desire it to be like this in reverence of and to preserve the sanctity of collective bargaining negotiations between the worker and his employer. It’s useless to negotiate for a higher wage if the entire amount is taxed,” he added.