MANILA – Some government projects may suffer due to revenue losses that are expected from a new measure exempting employees from paying taxes on fringe benefits.
Beginning January, the government will implement the additional P10,000 tax exemption on de minimis benefits being received by workers.
These include taxes on medical cash allowances for children; rice subsidies; uniform and clothing allowance; annual medical allowances; laundry allowances; employee achievement awards; and Christmas gift or anniversary certificates.
The Bureau of Internal Revenue (BIR) said government stands to lose some P17 billion next year due to the measure.
BIR Commissioner Kim Henares said the foregone revenues will force government to prioritize which projects will be implemented first.
“May mababawasan na proyekto kasi na-divert ang priority kasi binigay natin as tax exemption so foregone revenue. Magpa-prioritization, ‘yung mga importante, gagawin pa din, ‘yung mga hindi kasing importante, mamo-move ‘yan, kung may pera tayo tsaka lang natin gagawin,” she told dzMM.
The BIR is urging big businesses and companies to pay the proper taxes to make up the shortfall in tax collection.
“’Yung epekto nito na P16.9 billion ay matatapatan ng mga nagbabayad ng tamang buwis,” she said.
Henares also warns that the agency will take legal action against those who continue to evade paying the proper taxes. -- With a report from Jay Ruiz, ABS-CBN News