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Transcript of Senator Pia S. Cayetano's interview

PHILIPPINES, April 21 - Press Release April 21, 2022

Transcript of Senator Pia S. Cayetano's interview Senate Committee on Ways and Means (WAM) Hearing on bills seeking to exempt honoraria and allowances of persons rendering service during elections April 21, 2022

Q: On WAM hearing

To summarize, ang bill naman is simple. Sabi ng bill, exempt sa withholding tax ang tatanggapin na allowances and honoraria ng teachers. During the discussion, tiningnan natin ang history. Prior to 2019 na service na binigay ng teachers, alam naman natin na sila ang tumutulong sa election, no tax ang kanilang natatanggap na allowance. And then after the 2019 election, na-tax ng 5 percent. And then ngayong coming 2022 election, magiging 20 percent withholding tax. So tumataas ang tax nila. The position of course of the teachers is dapat hindi na sila ma-tax dahil mabigat na nga ang trabaho nila. Position naman ng BIR and DOF, klaro daw sa batas na any kind of compensation should be taxed.

Ako naman, I just want to put it clearly in perspective ang historical data natin na, una, walang tax ang mga guro sa trabaho nila sa eleksyon tapos naging 5 percent, and then ngayon 20 percent, so pataas nang pataas. That is the reality, pataas nang pataas. Ang basis ng DOF ngayon is it is considered compensation income so dapat ma-tax. Dati daw ang 5 percent was based on the interpretation that it's a professional service, kaya lang outside naman of their practice as teachers ang pagbigay ng service sa election. So tumaas.

What is my personal take here? I know the hard work of teachers. Napakabigat ng additional burden na binigay natin historically sa kanila to be in charge, di nga lang to assist, talagang be in charge of election. And I think it's a small show of support that we can do kung hindi na sila mata-tax.

But I understand the position of DOF dahil tatlong taon na rin akong WAM Chair na ayaw lang nila ng maraming administrative burden and then exemptions. Pero for me, hindi naman ito typical exemption kasi every 3 years lang naman mangyayari and historically, walang tax ito. So I am inclined to file the ComRep and the Senate is a body that decides by consensus, if majority supports it, yun ang magiging position ng Senate.

Q: Mahahabol pa po ba?

Yes kasi simpleng bill lang naman ito, it's just one provision that exempts the honoraria and any allowances teachers receive. So it's very simple. As to whether there will be enough time to defend it and debate it, that would depend on the Senate kasi kung naintindihan nila kaagad ang issue and are ready to make a position on it, then may time. Practical issues lang kasi tulad ng sinabi ng rep ng teachers' group, bawas na ang 20 percent sa allowance nila for training. Dun makikita ngayon ang concern ni DOF na may mga technical administrative issues. Pero not to overburden BIR naman, laki naman din ng burden na binigay natin sa teachers.

Q: Will there be a next hearing?

Wala na, okay na yan simple na, naintindihan ko na. So, basta naintindihan ko na I can prepare the ComRep and if we have questions, we can still contact them to get more info from all parties and they can always contact us also.

The process is very simple so bills have been filed. My ComRep will just adopt the House version which is quite general. And then I will route it for signature of the members so pagdating ng first day ng resumption namin May 23, file, calendar, kapag walang tanong. Kung may tanong sagutin ko maghapon, kahit kinabukasan, kaya talaga kasi simple lang siya, kaya ko naman sagutin so it's really up to our colleagues yung appreciation nila ng issues.

The payment of taxation for this year is next year pa. Kaya lang yun nga, may admin concerns tayo kasi nga meron nang nakaltas. There is a resolution that says within 15 days they (teachers) have to be paid. Magkakakwentahan yan. I agree na medyo administrative additional work pero additional work din naman ang ginagawa ng teachers so we can deal with it.

Q: How much does the DOF position weigh?

Of course it has weight because I worked with DOF and I understand that the objective of Sec. and the whole team is to simplify the process kasi andami natin leakages when andaming exemptions, sobrang naiintindihan ko yun. And in fairness naman sa TRAIN pa lang, tinaasan ang no tax bracket up to P250,000 so naiintindihan ko lahat yun. So may weight naman talaga ang DOF especially sa akin kasi I worked closely with them and understand.

But I also have to weigh it sa appreciation ko of the facts na ang work na ito is really a burden on the teachers and it's not a regular exemption, just every 3 years. I am considering that.

Q: What's your stand on the retroactive application?

Tingnan natin I don't know how strongly they feel about it and baka mabigat na yun, siguro ma-appreciate naman nila kung makatulong tayo dito. I can't answer. Again we are a collegial body. Kapag lahat ng sens gusto ganun, wala naman ako magagawa, ako pa ma-outvote. Ganun naman yun. I have to be practical also in my ComRep kung sobrang hirap naman din for DOF to do that baka pwedeng ma-veto yan, to be clear. Hindi natin alam, kasi kung sobrang bigat ng hinihingi natin baka ma-veto. I don't even know kasi I know the position of DOF, talagang may chance ma-veto yan.

Q: Calculation (on the number of the bill's beneficiaries)?

The number we had kanina... Hindi pa yan na-confirm... estimate is around 600,000 personnel. I am not sure who the source is but one of the numbers given during the hearing is around 600,000 personnel would be affected by this bill. Pero I told them to submit to me yung mas klaro kasi meron lang nag-estimate nito.

Q: On the PATAFA-EJ issue...

The way I'd like to reply to that is, one, I am very happy that EJ got the recognition he deserves by being named the flagbearer for the upcoming SEA Games. I think that in itself is already sweet victory for EJ. As a lawyer, and even as a friend of EJ, marami pa akong pwedeng sabihin pero nakita niyo naman kung gaano ito kadugo which I really feel no athlete deserves. So I would rather for now not make any further comments other than what i said, that EJ deserves that honor we are giving him to carry the PH flag for us. Moving forward, let me refer to the work on hand, I think and EJ himself has told me na very willing siya to even share more of his experiences for the purpose of legislation. If you saw the reso that I filed, sabi ko naman in aid of legislation. Andaming lessons na pwede matutunan doon sa nangyari kay EJ. And I happen to be the author and sponsor of the bill that is now a law, way back, on student-athletes' rights. So meron na akong ganung background na trinabaho ko. And it;'s not going to be that complicated for me to draft further legislation that would protect athletes and promote PH sports. Yun naman gusto ko. Wala naman ako gustong awayin dito but we need to create an environment that is productive and supportive of PH athletes. The reality is hindi mura maging Olympian, napakamahal, and the sacrifices they make are tremendous. So what else can we do but give all our support, including ang hinihiling ni EJ on record naman na admin support to liquidate his allowances and budgets being given to him. Kailangan mabigay yan sa ibang athlete.

Q: Status of the hearing of the EJ Obiena-PATAFA issue?

Hindi naman siya adjourned pero like I said in aid of legislation. It's up to the Comm Chair if he can come up with recommendations, pero for me, andami ko na na pick up doon that I can already use to prepare my future bills in aid of legislation so it has served its purpose naman for me.