The House Committee on Senior Citizens has OKed a bill exempting senior citizens from income tax.
The panel officially approved House Bill No. 8832 or the “Income Tax Exemption for Senior Citizens Act” on Tuesday (September 21), which seeks to amend the National Internal Revenue Code of 1997.
Under the bill, senior citizens, Filipinos aged 60 years old and above who are still working, shall be exempted from the payment of income tax.
The new measure will cover holiday pay, overtime pay, night shift differential pay, and hazard pay.
According to Senior Citizens Party-list Rep. Rodolfo Ordanes, who authored the measure, elderly Filipino workers don’t have enough funds for their retirement.
“Unfortunately, Filipino retirees were found to have limited savings for their retirement. According to the Bangko Sentral ng Pilipinas (BSP), Filipinos have only 3.6 months’ worth of income for retirement,” he explained.
“Meanwhile, the average savings of a Filipino family is only P52,000 per year. Thus it is almost impossible for our senior citizens to comfortably retire today,” Ordanes added.
The bill will now be delivered to House Committee on Ways and Means for approval and if approved, it will be transmitted to the plenary for further debates.
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