47 OCT. 2013
bio fi

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

3176

HOUSE BILL NO.

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D,

EXPLANATORY NOTE

This proposal seeks to grant tax exemption on allowances and benefits granted to
public school teachers consistent with the Constitution's mandate to "... assign the highest
budgetary priority to education and ensure that teaching will attract and retain its rightful
share of the best available talents through adequate remuneration and other means of job
satisfaction and fulfillment" [Article XIV, Section 5 (5)].

Public school teachers are among the most underpaid and overworked
professionals in our society today. Despite the fact that they are looked upon and heralded
as molders of our youth and prime movers of the education system, they are not accorded
the due recognition and importance they deserve.

Hence, public school teachers should be given the privilege of being exempt from tax
on allowances and benefits. In doing so, they will get extra money to spare for their other
needs and we would be able to attract and retain exceptional and dedicated teachers in the
public schools who will nurture our children to become productive partners in nation-
building.

In view thereof, approval of this bill is earnestly sought.

Cy
ANGELINA “HELEN’ Man, M.D.

4% District, Quezon

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3176

Introduced by: Hon. Angelina “Helen” D.L. Tan, MD.

AN ACT
EXEMPTING FROM TAX ALL ALLOWANCES AND BENEFITS GRANTED TO PUBLIC
SCHOOL TEACHERS, INCLUDING THOSE IN THE STATE COLLEGES AND UNIVERSITIES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION. 1. Statement of Policy. - It is hereby declared the policy of the State to
assign the highest budgetary priority to education and ensure that teaching will attract and
retain its rightful share of the best available talents through adequate remuneration and
other means of job satisfaction and fulfillment.

‘Towards this end, the State shall promote and improve the economic status of all
public school teachers, including those in State Colleges and Universities (SUCs) by
increasing their take home pay through tax exemption of al their allowances and benefits.

SEC. 2. Exclusion from Gross Income. - All allowances and benefits granted to public
school teachers, including those in the SUCs, shall not be included in the computation of
gross income and shall be exempt from taxation under Title III, Chapter VI of Republic Act
8424, otherwise known as the "Tax Reform Act of 1997". Moreover, they shall be exempt
from attachment, levy, and execution.

SEC. 3. Rules and Regulations - The Commissioner of the Bureau of Internal Revenue
is hereby authorized to promulgate such rules and regulations as may be necessary to
implement the provisions of this Act.

SEC. 4. Repealing Clause. - All laws, decrees, executive orders, letters of instruction,
letters of instruction, letters of implementation, rules and regulations, and other Issuances
inconsistent with any provision of this Act are hereby repealed, modified, superseded or
amended accordingly.

SEC. 5. Separability Clause. - If any part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected thereby shall
continue to be in full force and effect.

SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in any two (2) newspapers of general circulation.

Approved,