Tolentino urges tax deductions for work-from-home employees


Senator Francis "Tol" Tolentino proposed on Monday to deduct from tax payments the expenses incurred by work-from-home employees on electricity consumption.

Sen. Francis “Tol” Tolentino
(Senate of the Philippine FACEBOOK / FILE PHOTO / MANILA BULLETIN)

Tolentino raised the idea during the Senate energy committee's hearing in connection with the complaints about the sudden increase in electricity charge by distribution companies during the COVID-19 pandemic.

"Ito pong ginastos ng ating mga nagtatrabaho sa bahay, pwedeng ikarga bilang deductible expense sa pagbabayad ng buwis dahil po nabawasan ang gastos ng kanilang pinapasukan. (The expenses of our workers who work from their home could be considered a deductible expense in paying their taxes because the expenses incurred by their employers were reduced), whether this is a government agency a private corporation," he suggested to Senator Sherwin Gatchalian, energy committee chairman.

"Hindi na sila nagtatrabaho doon sa opisina nila, hindi kumo-konsumo ng aircon at kuryente (They no longer work in their offices, they no longer use their offices' air-conditioners and power). Dahil nagtatrabaho sila sa bahay, dadagdag po dun sa kanilang gastusin (And because they are working from their homes, their expenses have increased)," he explained.

He said he will file a bill on this proposal to amend the National Internal Revenue Code to provide an "an appropriate, considerable, reasonable" deduction on the gross income of any taxpayer who has incurred additional electricity consumption while working at home.

"Because he was able to produce something for the government office or for a private employer, he is entitled to some tax relief," Tolentino said.

During the hearing, the Manila Electric Company (Meralco) said that electricity consumption went up by 30 percent during the community quarantine, when people are made to stay home due to the threat of COVID-19 infection.

Tolentino said electricity consumption would further increase when blended and distant learning classes open in August.