The bill granting the country’s 270,000 medical frontliners 25 percent discount on their income taxes marched closer to plenary approval after gaining the support of the House Committee on Rules.
House Bill 8259 was approved for plenary action by the rules panel chaired by Majority Leader and Leyte Rep. Martin Romualdez.
Before this, the House Committee on Ways and Means chaired by Albay Rep. Joey Sarte Salceda had unanimously recommended plenary approval of HB 8259.
Aside from Salceda, other principal authors of the bill included Deputy Speakers Mikee Romero (1Pacman Partylist) and Deogracias Victor Savellano (NUP, Ilocos Sur); and Reps. Teodorico Haresco (PDP-Laban, Aklan); Arnie Fuentebella (NPC, Camarines Sur); Jose Enrique Garcia (NUP, Bataan); Rosemarie Arenas (PDP-Laban, Pangasinan); Ria Christina Farinas (NP, Ilocos Norte) and Jesus “Bong” (Suntay (PDP-Laban, Quezon City).
Salceda said the bill contains the main provision that demonstrrates the committee’s intention to “express the government’s appreciation for the exemplary service of medical frontliners.”
“In general, the Committee on Ways and Means has taken with serious effort its responsibility to raise revenues for the national government. To express the government’s appreciation for the exemplary service of medical frontliners, we are making a very special exception to this rule,” Salceda said.
He added: "The current COVID-19 special risk allowance and compensation for infection or death under RA 11494 (Bayanihan 2) are not enough to acknowledge their heroism in this time of pandemic."
Under the bill , 25% of the income tax dues of medical frontliners will be discounted.
Salceda also says that there are safeguards “to ensure that only those deserving of commendation shall benefit.”
He explained that the tax exemption “only benefits persons who are engaged in health-related services and are employed in hospitals, clinics, or other medical institutions, whether public or private, which treat patients infected with COVID-19.”
The bill also covers all medical frontliners exposed to risk, not just doctors or nurses. The term “medical frontliners” includes administrative employees, support personnel and staff of medical institutions, regardless of their employment status.
The Department of Finance (DOF) estimates that this will cover 270,619 frontliners.
The bill also limits the tax exemption from 100% to 25% of income tax due for taxable year 2020, reducing the revenue impact to P2.3 B. This shall be limited to salary or gross receipts from the exercise of profession or employment received by medical front liners for taxable year 2020.