DOF: Don’t raise income tax ceiling for bonuses

Various bills filed in the Congress, which proposes hikes in the income tax ceiling for bonuses such as 13th month pay, may hinder the government’s goal to improve its tax collection by 2016, according to the Department of Finance (DOF).

“The Philippines is still on deficit spending. The passage of these proposals will derail our deficit spending program of 2 percent of GDP [gross domestic product] in 2016, in the process wipe out the revenue gains from sin taxes that the country worked for 16 years to pass, and jeopardize our social spending commitments, especially for the rehabilitation for calamity-stricken areas and infrastructure,” Finance Secretary Cesar Purisima said in a statement on Thursday.