We, employees of the BPO Industry, a major growth driver of the economy, call on the government of the Philippines to exempt employees earning P33,000 and below, restructure the taxation scheme and enforce a progressive taxation system in the country.

Each payday, a big portion of our salaries go to taxes. This is despite the fact that most of us continue to earn below family living wage rates which is now at P1,096 a day. On the other hand, big foreign companies including BPOs enjoy millions worth of tax incentives and tax holidays.

While we recognize our responsibility as citizens to pay taxes, we deem it is high time that the government adjusts and restructure its taxation scheme towards a more progressive system. Since 1986, the income tax laws in the country have not been revised nor updated to keep up with inflation. To date, an employee earning P33,000 a month with no dependents pays P75,000 worth of taxes annually.

Reducing personal income taxes will provide economic relief to many of us who while earning above the minimum rate, continue to struggle with everyday expenses.  We deem that tax reduction will increase our purchasing capacity and will also help boost economic activity.

House Bill 333 proposes a sound and plausible alternative, which not only exempts those earning below the family living wage but also introduces a system that adjusts tax rates every three years to keep up with inflation. We strongly urge the government to support the legislation of HB 333, reduce the people’s tax burden and enforce a progressive taxation for the development of the people.

P33,000 tax exemption now!

Yes to a progressive taxation for the development of the people!