Tax exemption for poll workers, transport safety board vetoed

Marcos informed Congress about his decision to veto the two bills in separate letters. (File Photo: Bongbong Marcos/Facebook)

MANILA – President Ferdinand Marcos Jr. has vetoed two enrolled bills proposing tax exemption for the election honoraria of poll workers and creating the Philippine Transportation Safety Board (PTSB), Malacañang announced on Saturday.

In a statement, Press Secretary Trixie Cruz-Angeles confirmed Marcos’ decision to veto the proposed measures.

Marcos informed Congress about his decision to veto the two bills in separate letters.

Cruz-Angeles said Marcos vetoed the bill exempting from income taxation the honoraria, allowances, and other financial benefits of poll workers because it contradicts the objective of the government’s Comprehensive Tax Reform Program.

The bill aims to make the honoraria, travel allowance, and other benefits granted to poll workers exempt from tax.

It also seeks to exclude poll workers’ honoraria and allowances from gross income.

“The measure runs counter to the objective of the government’s Comprehensive Tax Reform Program to correct the inequity in the country’s tax system and negate the progressivity of the reforms introduced under RA (Republic Act) 10963 or the TRAIN (Tax Reform for Acceleration and Inclusion) law. Moreover, the studies of pertinent government agencies on the revenue loss is too substantial an impact to be foregone,” Marcos said in his veto message.

Marcos explained that the measure would be “inequitable to other persons performing similar activities and/or services.”

“Moreover, providing additional support to any sector is best addressed through targeted budgetary spending rather than through the tax system,” he said.

He urged Congress to enact measures that are “consistent with the thrust and commitment” of the administration toward national economic recovery.

On the measure proposing the creation of the PTSB, Marcos emphasized that the proposed functions are already being undertaken by different agencies under the Department of Transportation, which include the Land Transportation Franchising and Regulatory Board, Land Transportation Office, Philippine Coast Guard, Aircraft Accident Investigation Inquiry Board, and Maritime Industry Authority.

The Philippine National Police and the National Bureau of Investigation also perform the same functions, Marcos said.

Under the bill, the proposed PTSB shall be an independent and a non-regulatory agency under the Office of the President.

The PTSB shall ensure the maintenance of a safe, viable, efficient, and dependable transportation system; improve transportation safety measures to prevent accidents; and ensure the implementation of transportation safety standards.

“Considering that one of the primary policies and declared priorities of the administration is to enhance the government’s institutional capacity through optimal and efficient use of resources and strategic rationalization of the functions of government agencies, I am constrained to veto the bill,” he said.

Marcos asked Congress to instead push for measures “that will look into functions, operations, organization, systems, and processes of the aforecited government agencies with the end view of strengthening the same and providing a holistic and well-coordinated approach in the promotion of transportation safety.”