DOF, BIR urged to find ways to provide poll workers full amount of allowances, benefits

The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) should give lawmakers their proposals on how poll workers, including public school teachers, can receive the full amount of their honoraria, allowances, and other benefits, Sen. Sherwin Gatchalian said on Tuesday.

Gatchalian, who chairs the Senate Committee on Basic Education, Arts and Culture, said both agencies should provide alternatives if they are opposed to the pending measures that seek to grant election workers--including public school teachers-- a tax exemption.

“I am appealing to the DOF and to the BIR if they can give us a proposal on how we can give the full amount to our teachers," Gatchalian said.

"Pareho naman yung ating sentimyento na dapat tulungan yung ating mga (We all share the same sentiment that we must help our) teachers, so let’s just find a way to give them the full amount," said Gatchalian.

Gatchalian has filed Senate Bill No. 1193, which seeks to make the honoraria, travel allowance, and other benefits granted to poll workers exempt from tax.

The bill also seeks to exclude poll workers' honoraria and allowances from gross income. The majority of poll workers during national and local elections are public school teachers.

Gatchalian noted that the election honoraria and allowances of poll workers have never been subjected to tax until the 2018 Barangay and SK Elections and the 2019 midterm elections when the BIR imposed a five (5) percent withholding tax on their honoraria.

For the upcoming May 2022 national elections, they will be taxed 20 percent.

The DOF has said that while the agency recognizes the intent to help poll workers and public school teachers, it does not support the proposal to grant tax exemption on their honoraria and other benefits.

Citing a previous ruling from the BIR, state economic managers argued that poll workers’ honoraria and other allowances, "no matter the amount, are wealth that flow into the hands of the recipients and should be subject to income tax."

The DOF also said that the proposed tax exemption runs counter to the principles of the Tax Reform for Acceleration and Inclusion (TRAIN) Law to make the tax system more efficient and equitable.

The agency also pointed out that the tax system is not the best way to provide additional benefits to sectors, as it could be difficult to implement and could be subject to abuse.

But the reelectionist senator said the Tax Code already provides for different tax exemptions. The 13th month pay, for example, is exempt from tax.

Gatchalian also emphasized that elections in the Philippines are only held every three years.

“Exempting them from 20 percent withholding tax is a small recognition for their sacrifice and a small recognition for the extra mile that they demonstrated for our country in terms of assuring democracy,” Gatchalian stressed.