The Bureau of Internal Revenue has issued a revenue memorandum circular that imposes tax on health card premiums, a move that Senator Sonny Angara said penalizes the poor and low-income families.
BIR should continue implementing tax-free health benefits, Angara said,urging the agency to withdraw its revenue memorandum circular (RMC), which states that premiums on health cards shall be subject to tax.
RMC 50-2018 (A7) provides that premiums on health cards paid by the employer for all employees shall be included as part of bonuses and benefits which are subject to the P90,000 tax-exempt threshold.
In effect, the circular reverses previous BIR ruling and regulations that premium on health cards shall be tax-free.
BIR stated that RMC 50-2018 sought to clarify the implementing rules of Republic Act 10963.
Although they scrutinized each page of RA 10963, Angara said he cannot see the imposition of taxes on HMO or health card benefits.