Bayan Muna Reps. Teddy Casiño and Neri Colmenares yesterday filed a House bill "to clarify once and for all the BIR's erroneous view that Pag Ibig, SSS and GSIS contributions are taxable," a press release from the group said.
House Bill No. 5609 bill seeks to correct the "unfair situation" resulting from BIR Commissioner Kim Jacinto-Henares' Revenue Memorandum Circular no. 27-2011, which would slap taxes on voluntary contributions to the Pag-Ibig Fund, GSIS and SSS.
"Instead of helping Filipinos get out of poverty, the government is further pushing them down by taxing what meager savings they put in these institutions,” Casiño said.
It is disturbing that the BIR is always trying to get the hard earned money of wage earners and the middle class, just this week if not for Congress’ vigilance against Memorandum Circular No. 57-2011 due to mounting concerns the additional information that would be required of taxpayers would violate their right to privacy, the press release said.
Henares issued the circular on Nov. 25 to compel individual taxpayers to submit supplemental information detailing their financial transactions – from bank deposits to stock trading to property sales – beginning next year, it added.
Last year, the BIR issued a similar order (MC 40-2011) which also generated a howl of protest.
“She should focus on taxing the rich and big corporations instead of ordinary employees who are already the most taxed, as their taxes are automatically withheld. Taxing Pag-Ibig and SSS means reducing capacity of ordinary employees to build their houses or save for their future,” Casiño said.*