Press Release
May 29, 2008

Gordon hails passage of tax exemption measure for minimum wage earners

Senator Richard Gordon hailed the passage of the tax exemption bill on third reading as a victory for minimum wage earners.

"This will afford our minimum wage earners and even some income taxpayers in higher brackets a bit of relief in the face of the continually increasing costs of fuel and basic consumer items," said Gordon.

The tax exemption of minimum wage earners would mean lesser deductions on their wages and thereby enable them to take home more money. This coupled with the recent minimum wage increase could mean an actual increase in their daily take home pay of about P50 or P2,000 a month.

Senator Gordon filed Senate Bill 1616 which proposed to amend Section 24 and Section 51 of the National Internal Revenue Code of 1997. The bill proposes to adjust the present income tax rates and exempt small income earners of not over P60,000 and minimum wage earners from paying income tax. It also proposes to relieve small income and minimum wage earners from filing individual income tax returns.

Gordon however stressed that while the tax exemption measure provides some relief, he pointed out that other legislative measures need to be enacted into law that would bring higher earning opportunities to millions of Filipinos. He cites the tourism bill as an example, pointing out that tourism was capable of directly accelerating economic activity in tourism areas and thereby increasing employment opportunities as well as increasing the incomes of various businesses.

"These are indeed tough times for the working man and while we find ways of affording him some relief, we should not lose focus on the greater challenge of providing him with the means to realize true economic upliftment. When we revived Intramuros as Tourism Secretary, the ordinary balut vendor selling his product within its walls earned two times more than the daily minimum wage," said Gordon.

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