BAGUIO CITY— A total of 944 regular employees of the city government out of the 1,252 received their salaries Monday without tax deduction, city human resource office chief Augustin Laban told the Philippine News Agency on Monday.
Lawyer Laban said these are the employees holding positions with salary grades 2 up to step 5 of salary grade 12.
City Accountant Antonio Tabin, in Monday’s flag raising ceremony, explained to employees of the city the benefits they can get from the Tax Reform for Acceleration and Inclusion (TRAIN) Law, the first package of the Comprehensive Tax Reform Program (CTRP) envisioned by the administration of President Rodrigo Duterte.
Tabin said Republic Act 10963, the TRAIN Law, simplified, corrected and adjusted the complex personal income tax system in the country.
He explained that for employees receiving PHP250,000 and less, they are exempt from paying income taxes while for those receiving above the cap will pay tax in excess of the amount.
With the TRAIN, even married women with children can now avail of a tax exemption if their salary falls within the category or pay only beyond the PHP250,000 limit on tax exempt salaries.
The law also increased the gross benefits of employees to PHP90,000 from the old rate of PHP82,000, which includes the Productivity Enhancement Incentive (PEI), the Collective Negotiation Agreement (CNA) from savings and the one month salary annual bonus.
Today, the 944 employees received their salaries with only a deduction for their Government Service Insurance System (GSIS), Philhealth and Pag-IBIG.
Tabin said employees on Step 6 of salary grade 12 will only pay PHP23 a month and up depending on the amount of salary.
A division head holding a salary grade of 22 pays PHP8,350 montly tax, he said.
Tabin added that Vice Mayor Edison will be deducted with PHP26,000 monthly tax which would have been PHP33,000 without TRAIN.
Mayor Mauricio Domogan, who holds a salary grade 30, will pay PHP35,249 which would have been PHP44,621 if the new tax reform was not passed into law. (PNA)
