The Committee on Ways and Means at the House of Representatives has approved, in principle, approved a bill providing a 25% personal income tax discount for COVID-19 medical frontliners.
According to Rep. Joey Salceda, the committee’s chairman, the House panel okayed the tax discount “because we do not want to tax the hazard pays and other allowances earned by the frontliners.”
He added discount would likely apply to taxes on the frontliners’ COVID-19 allowances.
“Let me be clear: I do not want the government to tax their heroism,” Salceda said.
What the House panel approved was the substitute bill.
The revenue implication of the initial proposal, Salceda noted, was P9 billion, “according to a position paper sent by the Department of Finance.”
Nueva Ecija Rep. Estrellita Suansing, Committee on Ways and Means vice chairman, “suggested the 25-percent discount as a compromise,” he said.
“The exemption granted in this proposal will only cover the salary or compensation, as well as the gross receipts from the exercise of profession or employment received by” frontliners for taxable year 2020,” Salceda noted.
The Committee on Ways and Means also approved the substitute bill’s tax provisions that seek to establish the Boracay Island Development Authority.
House panel approves 25% tax discount for medical frontliners
“We need coordinated investment in Boracay. Conservation approaches have to be carefully managed. That is why we have development authorities for world heritage sites.”
“Boracay should be no different, considering its vital importance as the centerpiece of our sustainable tourism strategies,” Salceda said.
“With this authority in charge, we can more carefully plan investments in Boracay,” he added.
The committee “approved provisions that will grant the authority the same privileges as other ecozones,” Salceda said.
Last month, President Rodrigo Duterte hazard pay grant, special risk allowance for COVID-19 health frontliners.
Under Administrative Order No. 35, COVID-19 medical health workers would receive active hazard duty pay amounting to up to ₱3,000.
Meanwhile, Administrative Order No. 36 grants a special risk allowance of up to ₱5,000 for private and public health workers “who directly cater to or are in contact with” infected patients.