FORMER President and now Pampanga Rep. Gloria Macapagal-Arroyo is pushing for additional tax exemption for taxpayers who care for their elderly parents.
Arroyo has filed House Bill1522, which seeks to amend paragraph B of Section 35 of Republic Act 8424, or the National Internal Revenue Code (NIRC) of 1997 to include an additional exemption of P25,000 for each elderly parent being cared for by a taxpayer.
“An additional exemption of P25,000 for each elderly parent shall be, likewise, allowed to the individual taxpayer, provided that the elderly parent is chiefly dependent on and living with the taxpayer,” Arroyo stated in her bill.
Under the measure, an elderly is defined as any parent who is at least 60 years old with no means of support.
The current law allows an individual taxpayer an additional exemption of P25,000 for each dependent child, not exceeding four.
Arroyo said this measure seeks to relieve taxpayers who are taking care of their elderly parents from additional tax burden and also allow them to save money, which can be used to meet the nutrition, education, medicines and other basic needs of other dependents.
Arroyo said Republic Act 7432, or the Senior Citizens Act ,had allowed a taxpayer, who is head of the family, to include a senior citizen as a dependent under the NIRC.
However, this privilege was not expressly provided under RA 8424 which is why there is a need for a new legislation in order for individual taxpayers to fully avail of this additional tax exemption, she noted.