House panel okays income tax exemption for seniors
HERE’S another benefit for the senior citizens.
A measure seeking to exempt seniors from paying income taxes was being considered in the House Committee on Senior Citizens.
Members of the House panel approved House Bill No. 8832 or the “Income Tax Exemption for Senior Citizens Act” which amends the National Internal Revenue Code of 1997.
Under the measure, senior citizens, or those aged 60 years old and above, who are still under continued employment shall be exempted from the payment of income tax.
The tax exemption also covers holiday pay, overtime pay, night shift differential pay, and hazard pay.
During the virtual hearing, Bureau of Internal Revenue (BIR) Law and Legislative Division Atty. Mary Gretchen Mondragon suggested that a threshold be established to target the marginalized senior citizens rather than those in the higher income bracket.
Currently, the bill does not specify a cap on the amount of income that would be tax-free for senior citizens.
Solons urged the BIR to reconsider exempting citizens from paying taxes once they reach the age of 60 until they retire.
The HB 8832 would now be referred to the Committee on Ways and Means for consideration of its tax exemption provisions.
According to the Bangko Sentral ng Pilipinas, Filipinos have only 3.6 months’ worth of income for retirement.
Meanwhile, the average savings of a Filipino family is only P52,000 per year.
