A measure seeking to grant COVID-19 frontliners a 25 percent tax discount for the year 2020 hurdled the House Committee on Ways and Means this morning.

Approved by the Albay Rep. Joey Salceda-chaired panel was a currently unnumbered substitute bill covering six measures – House Bills (HB) No. 984, 2901, 3751, 7351, 7523, and 7978.

"The committee has prepared a draft consolidated bill, with the bill of (Nueva Vizcaya Rep. Luisa Lloren) Cuaresma as the base bill," senior panel vice chairperson Nueva Ecija Rep. Estrellita Suansing bared during the proceedings.

The Cuaresma measure proposes to exempt from taxation for this all medical and non-medical frontliners who are directly serving, treating, caring, aiding, and assisting COVID-19 patients.

However, Suansing noted that the Department of Finance (DoF), in its position paper, is worried over the "huge revenue impact of the measure." The revenue implication of the original proposal, a full tax exemption, was P9 billion.

"We are proposing a 25 percent tax discount in the consolidated bill; we think it is more feasible," the lady solon said. Salceda called it a "pretty good compromise" and that it was limited to 2020 anyway.

Suansing later moved for the approval of the measure subject to amendments and style. Nobody objected during the virtual hearing.

"This is unanimously approved. This is our own small way of compensating (our frontliners)," Salceda said after carrying the motion.

The panel chairman was emboldened to swiftly pass the measure after computing in his head the relatively high risk of infection that frontliners face in comparison to ordinary citizens. According to DoF Director for the Information and Liaison Office Juvy Danofrata, the proposed tax discount would cover 270,619 frontline workers.

Taking this figure and the estimated 46,000 doctors alone who have been infected with COVID-19 as per the Philippine Health Insurance Corp. (PhilHealth), this would yield an infection rate of roughly 17 percent among frontliners. In comparison, the positivity rate in the entire country is 1.1 percent.

Salceda said that this kind of empirical evidence "makes legislation inevitable; the action of Congress is compulsory."

"This is in the definition of risk and hazard...so I think there is basis (for the bill). Compared to an ordinary person, a medical personnel who treats and accepts COVID patients is (16) times more likely to be infected. That kind of risk is I think... assumes a certain moral responsibility," the Bicolano added. 

He said the exemption granted in the proposal will only cover the salary or compensation, as well as the gross receipts from the exercise of profession or employment received by frontliners for taxable year 2020. The exemption will not cover income received by medical frontliners from their other businesses, investments, and other kinds of passive income not related to serving, treating caring, aiding, and assisting COVID-19 patients.

To help frontliners file their income taxes on time given the potential changes in their tax calculations, the Secretary of Finance will also be given the authority to extend tax filing by six months.