The Special Committee on Senior Citizens passed House Bill 8832, or the proposed “Income Tax Exemption for Senior Citizens Act,” which aims to help employed elderly increase their savings for retirement.
“Today, senior citizens are unable to fully enjoy retirement because they are unable to save enough money to compete with the rising costs of being senior citizens,” read the explanatory note of the bill authored by Senior Citizens Party-List Rep. Rodolfo “Ompong” Ordanes.
However, a representative of the Bureau of Internal Revenue said it is their policy not to encourage such proposed legislations that do not provide for new sources of revenue.
“We cannot support the tax exemption per se, but we probably can support the additional deduction provided to companies that will provide employment opportunities to senior citizens,” Atty. Mary Gretchen Mondragon of the bureau’s Law and Legislative Division said during the virtual deliberation.
She also recommended that a threshold be specified for the income that will be subjected to the exemption. Mondragon said instead of including those who have high earnings, the bill could be revised to benefit, for instance, only those whose wages are below minimum.
“There are a few senior citizens that are earning so much, and we do not believe they are the target of this bill,” she said.
Ordanes expressed willingness to consider excluding those in the higher income bracket.
The bill will now be referred the Committee on Ways and Means for consideration of its tax exemption provisions, a House press statement said.
Metro Manila (CNN Philippines, September 21) – A House of Representatives committee on Tuesday approved a measure seeking to provide income tax exemption to those aged 60 and above.
