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MINIMUM wage earners acquired some sort of a weapon to fight the
rising price of basic commodities after President Gloria Arroyo on
Tuesday signed Republic Act 9504, an act amending several sections
of National Internal Revenue Code of 1997, into a law, exempting
them from paying income tax.
The new tax exemption law will provide minimum
wage employees earning P382 a day an additional take-home pay of P34
a day or P750 a month. In addition, all holiday, night differential,
hazard and overtime pay will not be subjected to tax.
The President signed the measure before starting
the Cabinet meeting Tuesday with officials of the National Food and
Energy Council and the National Economic and Development Authority.
Opposition Sen. Francis Escudero, one of the principal authors of
the measure, was also present during the signing.
An unmarried employee earning P455 per day or
P10,010 per month would have an additional take-home pay of P472.59
per month or P5,671.02 annually; P678.50 per month or P8,142.04 a
year for employees who are head of the family; and P580.92 per month
or P6,971.02 a year for married employees four children.
As for single employees earning P683 per day or
P15,026 per month, they would have an additional take-home pay of
P545.26 per month or P6,543.10 a year; P1,307.18 per month or
P15,686.20 if they are the head of the family; and married employees
with four children will net an additional take-home pay of P1,190.52
per month or P14,286.20 a year.
The government will lose about P14-billion worth
of tax collection from the new exemptions, but assured the public
that it will look for other sources of revenue to compensate for the
losses.
-- Jefferson Antiporda
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