DOF: Raising bonus tax ceiling may result in P62-B loss
MANILA – The Department of Finance (DOF) played the calamity card in opposing plans to reduce taxes on bonuses and benefits.
The DOF said on Thursday that a push in Congress to make bonuses less taxable could mean less government funds for rehabilitation and services in calamity-hit areas.
Congress is considering proposals to raise the bonus tax ceiling, which means if you have a bonus, the government will only tax the amount over P75,000.
Currently, the government taxes anything above P40,000.
The DOF said the government will lose P61 billion in taxes if the proposal is passed, wiping out gains from higher sin taxes.
“The Philippines is still on deficit spending. The passage of these proposals will derail our deficit spending program of 2% of GDP 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 Sec. Cesar Purisima said. -- With ANC