DOF, BIR propose higher tax-exempt benefits for workers

The Department of Finance (DOF) and Bureau of Internal Revenue (BIR) have proposed to increase the ceilings for tax-exempt benefits for employees in both the public and private sectors.

DOF Secretary Ralph Recto stated that the increase in tax-exempt benefits will have a minimal impact on government revenues but will significantly benefit workers.

The proposal aims to account for inflation and rising living costs while enhancing competitiveness across sectors and maintaining prudent fiscal management.

President Ferdinand Marcos Jr. confirmed that the DOF and BIR have submitted proposals for the increase of ceilings for tax-exempt de minimis benefits, in line with his directive for tax relief.

Marcos emphasized that these changes are about ensuring fairness and dignity in the workplace.