While the working class rejoices on approval of bill to increase tax exemption on bonuses, BIR (Bureau of Internal Revenue) on the other side of the fence foresees a big revenue loss towards the end of the year.
According to BIR, the enactment of bill to increase tax exemption on bonuses, now known as Republic Act 10653 will take away a big chunk of tax revenues for the coming year. BIR reckons a whopping 25 to 30 billion loss which in turn will affect government funds.
BIR revenue target for 2015was initially set at 1.723 trillion Pesos. Now with the implementation Republic Act 10653 -bill to increase tax exemption on bonuses, BIR’s revenue target is now downgraded to 1.674 trillion Pesos.
This is actually the 2nd time BIR adjusted their revenue target.As we recall, late last year, the list of tax exempted de minimis benefits was expanded to include benefits under collective bargaining agreements (CBAs) and productivity incentive schemes. BIR claims that this amendment will result to a P16.9 billion loss in tax revenue.
In an interview, here is what BIR Commissioner Kim Henares says about the implementation of the bill to increase tax exemption on bonuses – ” Wala naman na po tayong dapat i-argue kasi na-implement na po yan. At the end of the year, malalaman natin magkano ba talaga ang epekto nung 82,000″.
Furthermore on her stand on bill to increase tax exemption on bonuses, BIR Commissioner is actually in favor of Republic Act 10653 in the consideration of the low salary received by workers in the country particularly in the government sector. She wishes that the success of the bill to increase tax exemption on bonuses will not be used in any form political lobbying as election time is nearing, especially that it is the peoples’ livelihood that is at stake.
But despite her concurrence on bill to increase tax exemption on bonuses, Henares emphasized that ” Hindi po yan basta-basta ginagawa.Kailangan may balanse yan. Kung may binibigay tayo, kailangan may pagkukunan”.