A measure was filed in the Senate yesterday seeking to increase the limit on the amount of 13th month pay, Christmas bonus, and other benefits exempted from income tax.
Senate President Pro-Tempore Ralph Recto, who filed the measure, said he wants the exclusion raised to P75,000 since the present ceiling was set by a law enacted almost 20 years ago.
Recto said present laws exclude the mandated 13th month pay and the Christmas bonus from the coverage of income taxes, but only up to P30,000.
He said any amount in excess forms part of an individual's gross income and therefore subject to the National Internal Revenue Code.
An increase in the ceiling of the 13th month pay and other benefits to be exempted from income tax is one of the reliefs the people need during these hard times, he added.*PNA