The House of Representatives Committee on Ways and Means on Monday approved a still unnumbered substitute bill that exempts the honoraria paid to election servers from income tax and other withholding taxes.
This applies to the pay given to members of the Board of Election Inspectors (BEIs), who are usually public school teachers.
BEI members are given allowances for serving in national and local elections under Republic Act No. 10756 or the Election Service Reform Act.
“My mother was a teacher for 43 years, so I support this measure. The cost is very reasonable, at around P56.8 million. It’s worth apprehending just one bigtime tax evader. It’s an easy choice,” said Albay Rep. Joey Salceda, chairman of the committee.
Salceda added he will be a principal sponsor of the substitute bill to the measures filed by Rep. France Castro and Rep. Lloren Cuaresma.
“As part of the House leadership team, I will help defend this bill so that the House can fast-track this in time for the 2022 elections,” Salceda said.
According to data from the Commission on Elections, taxes withheld for the 2019 National and Local Elections amounted to P56.8 million.
“Considering both the risks election workers take, the relatively small size of their compensation for such an important function, and the reasonableness of the tax foregone, this proposal does not pose serious threats to our revenue strength,” Salceda said.
“As the proposals have similar goals, the Committee is inclined to prepare a Substitute Bill for the two measures,” Salceda added.
The substitute bill will have a proviso that amends the National Internal Revenue Code of 1997 to exclude election-related honoraria and allowances from the computation of gross income.