Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City ie

BATES 0 8 2nz

NINETEENTH CONGRESS
First Regular Se:

HOUSE BILL No. 9271

Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,

and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL

AN ACT
EXEMPTING FROM INCOME TAXATION ALL AMOUNTS GRANTED TO
PERSONS RENDERING ELECTION SERVICE FOR LOCAL AND
NATIONAL ELECTIONS

EXPLANATORY NOTE

This bill seeks to exempt from income tax the compensation received by poll
workers in national and local elections under the Election Service Reform Act or
Republic Act 10756,

The ESRA significantly increased the honoraria, allowances, and other
compensation of volunteers for election service, most of whom are still public school
teachers who sit as members of the Boards of Election Inspectors. However, the law is
silent as to the tax treatment of such compensation.

While there should be no change in the tax treatment of the honoraria, and other
compensation for election service—which have never been subjected to income tax
prior to the passage of the ESRA and the 2018 Barangay and Sangguniang Elections—
recent rules and regulations of the Bureau of Internal Revenue reversed the situation. It
considered the election compensation as income and thus taxed the same as such.

This destroys the spirit and intent of the ESRA, which is to compensate the
hardships of persons rendering election service. They must therefore enjoy the
compensation in full and not bear additional burdens. It should be noted that volunteers

"receiven



for election service exhaust their honoraria and allowances for travel, food. and other
expenses before. during. and even after election day because they are required to attend
the trainings, deliver the election paraphernalia to and from the COMELEC offices and
precincts, and perform other election-related tasks. They are even forced to augment
whatever they get from COMELEC by spending their personal funds.

Hence, there is an urgent need to enact this bill to set straight the BIR rules and
regulations as regards compensation for election service and to expressly exempt from
income taxation all amounts granted to persons rendering election service for local and
national elections.

After being initially pushed in the 17" Cong: during which it hurdled the
Third Reading, this bill was passed with a unanimous vote in the 18 Congress. The
Senate also passed the counterpart bill, and this measure was on its way to becoming a
law if not for the veto of President Ferdinand Marcos, Jr. on the thirtieth day afier its
transmittal. The alleged reason: “to correct the inequity in the country’s tax system and
negate the progressivity of the reforms introduced” However, the annualized revenue
loss for this measure. as cited by another proponent and Ways and Means Chairperson
Rep. Jocy Salceda, is a mere P138.6 million. And while this loss means so little to the
national coffers—as it surely will be offset by truly progressive tax measures that levy
more from the rich than the poor and the middle class—this amount means so much to
the thousands of teachers and other poll service volunteers who rely on whatever
benefits and savings they can get. Indeed, there is nothing more inequitable than
depriving much from those who can hardly afford their basic needs, especially during
these times of unabated inflation.

Approval of this bill is earnestly sought.

. ARLQNE D. BROSAS Rep. RAOUL DANNJEL A. MANUEL
GABRIELA Women’s Party KABATAAN Party-List

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

3271

HOUSE BILL No.

Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL

AN ACT
EXEMPTING FROM INCOME TAXATION ALL AMOUNTS GRANTED TO
PERSONS RENDERING ELECTION SERVICE FOR LOCAL AND
NATIONAL ELECTIONS

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

SECTION 1. Section 32(B)(7) of the National Internal Revenue Code of 1997, as
amended, is hereby further amended to read as follows:

Section 32. Gross Income. -
(A) General Definition. - x x x
(B) Exclusions from Gross Income. - x x x
(1) XXX
(7) Miscellaneous Items. -
(a)xxx

(1) HONORARIA, TRAVEL ALLOWANCE, AND
SUCH OTHER BENEFITS AS MAY BE GRANTED



BY THE COMMISSION ON ELECTIONS
(COMELEC) TO PERSONS RENDERING
ELECTION SERVICE PURSUANT TO SECTION 4
OF REPUBLIC ACT NO. 10756, OTHERWISE
KNOWN AS THE “ELECTION SERVICE REFORM
ACT”: PROVIDED, THAT THIS SHALL APPLY TO
THE 2023 ELECTIONS AND THEREAFTER.

SEC. 2. Implementing Rules and Regulations. ~ The Department of Finance shall. in
consultation with the Commission on Elections and the Department of Education.
promulgate rules and regulations to implement the provisions of this Act within sixty
(60) days from its effectivity.

Clause. — If any portion or provision of this Act is declared void
ions hereofshall not be affected

SEC. 3. Separab
and unconstitutional, the remaining portions or prov
by such declaration

SEC. 4. Repealing Clause. — All laws. decrees. rules and regulations. and other
issuances inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 5. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or one (1) newspaper of general circulation,

Approved,