Makati City Mayor Abby Binay has called for tax exemptions on the overtime and 13th-month pay of both private and public sector workers, aiming to ease financial burdens on Filipino families.
In a statement on Thursday, Binay emphasized that exempting these earnings from tax would provide workers with more disposable income for essential needs.
She argued that such a move would reduce poverty risks, particularly for low to middle-income families amid inflation.
Binay further noted that the tax break could stimulate consumer spending, boost business growth, and ultimately enhance government revenue.
Under the current Tax Code, only the first P90,000 of additional benefits, including the 13th month pay, is non-taxable, with any excess considered taxable income.
Source: PhilNews24 | January 24, 2025
