Senators disagree with BIR health premiums tax

Senator expressed their rejection on Tuesday over the BIR health premiums tax which was part of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (Train).

BIR recently released an order to compute health premiums as part of bonuses and benefits which are subject to the P90,000 tax-exempt threshold.

According to Senator Francis “Chiz” Escudero “only Congress, not the BIR, has the power to tax…Nowhere in RA 10963 did it state that it was the intent of Congress to so tax health card premiums” stated in a text message as per an article with

“RMC (Revenue Memorandum Circular) 50-2018 is a usurpation of Congress’ inherent power to tax and is therefore invalid…At a time when we are trying to curb inflation, the BIR is not helping at all…”

Sen. Escudero the pushed to “reconsider its issuance or, in the alternative, for affected parties to question it before the Courts.

Ralph Recto who is currently the Senate President Pro Tempore also shared the same point of view.

The BIR taxing health card premiums will not further the government’s objective of having a healthier citizenry. BIR should refrain from taxing health insurance premiums…It’s not in the law to tax them (health card premiums)” he said.

Senator Sonny Angara, chair of the Senate committee on ways and means has urged BIR earlier to take back the order as it “In effect, the circular reverses previous BIR ruling and regulations that premium on health cards shall be tax-free,” he said



clear up the regulation at once”  as employers are set to release the 13th-month pay and Christmas bonuses of their employees in the coming weeks




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