MANILA, Philippines — Sen. Loren Legarda on Tuesday pushed for a new tax reform measure to raise exemptions, remove unfair taxes on ordinary workers' earnings, and keep take-home pay in step with the cost of living.
Legarda filed Senate Bill 2255, or the Keeping Incomes Tax-relieved and Augmented (KITA) Act, which amends the National Internal Revenue Code of 1997.
Key provisions of the proposed KITA Act include raising the annual income tax exemption threshold to P400,000, so workers earning up to about P33,000 a month would pay no income tax; increasing the tax-free bonus ceiling to P150,000, so more of the 13th month pay and year-end bonuses stay untouched by tax; and removing tax entirely on service charges for service industry workers, and on overtime, holiday, night-shift differential, and hazard pay, so putting in extra hours actually means taking home extra pay.
The measure also seeks to exempt the honoraria and allowances of election poll workers from tax, so teachers and volunteers who put in long hours running elections keep the full amount they are paid for that work.