BPO Workers Strengthen Call for Tax Holiday Press Release July 7. 2014 Following the successive house bills directed toward augmenting BPO workers wages, The BPO Industry Employees Network (BIEN) strengthens its call for a 3-month Tax Holiday. The latest house bills authored by Makati City Rep. Mar-Len Abigail Binay, House Bills 2836 and 4682, proposes that all night-shift differential and overtime pay be exempt income taxes supplementing House Bill 4414 seeking to increase night differential pay for BPO employees from 10 percent to 25 percent. These bills moving us toward improving the welfare of BPO workers are very welcome legislations. These show that more and more legislators are recognizing the importance of BPO workers and are coming to the aid of BPO workers, BIEN President Ian Porquia states. However, BIEN fears that these bills will be placed at the lowest priority. Weve seen far too many pro-worker bills gather dust in Congress. If President Aquino can expedite the approval of DAP under the pretense of economic stimulation, the challenge is to ensure that these bills get prioritized, Porquia says. The country’s BPO sector, which has a growing 900,000-strong workforce, contributes Php2.7 billion in tax revenues each month, totaling Php 32.6 billion a year. An ordinary call center employee who earns an average of P18, 000 a month with a tax code of single and no dependents will have a monthly withholding tax of P3, 400 or equivalent to 18%. This is excluding the tax deduction for bonuses and incentives which amounts to 34% regardless of tax classification. Every pay day, whenever we look at our pay slips, the most prominent deduction that we see is the withholding tax. This money being deducted from our pay slips could’ve paid our electricity, bought food, necessities for daily living, but frankly we barely feel our TAX actually working for us, so these House bills legitimize BIENs call for a Tax holiday Porquia adds. BIEN has been pushing for a Tax Holiday wherein there shall be no income tax deduction for 3 months. BIEN clarifies that the contention of this tax holiday is not to cripple the BIR but to give ordinary taxpayers an opportunity to fully enjoy their hard-earned salaries for 3 months. This in turn will increase their spending power, cycling the money back into the market and eventually back to BIR. We acknowledge and appreciate the long term benefits of House bills 4414, 2836 and 4682; we however urge the government for an acute and immediate reprieve in the face of the PDAF scam and DAP anomaly through a 3-month Tax Holiday”. Porquia concluded. Reference: Ian Porquia, BIEN President 0918-2182678
Posted on: Mon, 07 Jul 2014 03:46:57 +0000
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