President Benigno Aquino III on Thursday February 12, 2015 signs into law the bill seeking to increase the tax exemption of bonuses and 13th month pay from the current 30 thousand pesos to 82 thousand pesos.
In a tweet, House Ways and Committee Chair Rep. Miro Quimbo confirms the report and lauded the President for his belief in tax reform. He added that the breakthrough shows that the President is still committed to his work contrary to what many people are saying.
It took almost a year before the bill was passed into law and signed by the President. It was in March 2014 when Sen. Sonny Angara first introduced SB 2157 seeking to adjust the ceiling of the tax exemption on bonuses and 13th month pay. Other bills of the same nature where also introduced by other Senators thus in October 2014 it was consolidated into SB 2437 which also adjusted the original 75K cap to 82K.
On the part of the Congress it was quite smooth sailing, as it only took one month to pass. It was introduced on September 4, 2014 and was approved on 3rd and final reading on September 30, 2014 where it was transmitted to the Senate.
It was in November 26, 2014 that the Senate version was approved in 3rd and final reading.
The bill didn’t need to pass into the bicameral committee as Congress adopted the Senate version leading to its expedited transmittal to Malacañang for the President’s signature last January 12, 2015.
With the bill becoming a law, millions of middle class earners will benefit from the increase of tax exemption ceiling.