Metro Manila, Philippines – Earning P400,000 in salary for a year? This will be tax-exempt in the proposed “GINHAWA Act” of Senator Win Gatchalian.
The bill, otherwise called the Granting Increase in Take-Home Pay for All Working Filipinos (GINHAWA) Act, seeks to amend the National Internal Revenue Code of 1997, which granted tax exemption for those earning up to P250,000 annually.
“Napako na ‘yung 250,” Gatchalian said in a press conference on Tuesday, July 1 after the filing.
“Alam naman natin every year may inflation so in-adjust namin sa inflation… so it’s just fair,” he added.
[Translation: The P250,000 has been stuck for too long. We all know that there’s inflation every year, so we adjusted it accordingly… it’s only fair.]
The bill also proposes revised tax rates, beginning with 15% for those earning between P400,001 and P650,000 annually, and so on.
It also seeks to exempt from taxes holiday pay, overtime pay, night shift differential, hazard pay, and service charge shares.
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Gatchalian said his office has studied the proposal’s impact on government revenues and ways to offset it.
