More tax-exempt workers sought

MANILA, Philippines — Amid the rising cost of basic commodities, a labor group is pushing to raise the number of tax-exempt workers in the country.

Former Trade Union Congress of the Philippines (TUCP) secretary general Ernesto Herrera, in a statement, yesterday urged the government to expand the bracket of its income tax exemption program to cover more workers and prevent possible social unrest.

Under Republic Act 9504, only workers, who receive a minimum wage, are exempted from paying their income tax.

“The bitter reality is that workers will have to further tighten their belts… but the government should do its share in reducing the burden of workers,” Herrera said.

He also said the government could consider other non-wage assistance to workers such as broadening the list of consumers’ products under its price control.

He said this will cushion the impact of the “inflationary effects” of the continuous increase in fuel prices and transportation fares.

Herrera made the statement after the regional wage boards said it could not yet issue a wage hike due to the one-year ban on wage adjustments and the absence of a supervening condition such an abnormal rise on inflation or fuel prices.

Various labor groups have since then launched a series of protest actions against the government’s alleged inaction on the matter.

“We issued the call to calm workers as adjustment in wages may yet take some time in as much as the last round of wage adjustment took effect May 26, 2011,” Herrera said. –SAMUEL P. MEDENILLA, Manila Bulletin