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Solon seeks granting of tax credit to employers of ex-convicts

A lawmaker is seeking to provide employers of ex-convicts with incentive by way of tax credit
amounting to P3,000 or two percent of the basic salary of the worker to encourage companies or
individuals to hire past offenders.
ep. !sagani ". Amatong #3
rd
$istrict, %amboanga del &orte' said his proposal intends to help
former offenders to move from economic dependency to self-earning and contributing taxpayers, while
participating employers are able to reduce their income tax liability.
"ince former convicts consistently face employment discrimination, he said the "tate must create
the mechanism, which will successfully reintegrate former offenders to the society.
()he past criminal record of a potential employee tends to affect his or her chance to be hired due
to the social stigma created by the past wrongdoings. Although the "tate may not penali*e companies for
+discriminating, due to company policies, it may give incentives to companies who are bold enough to
give these individuals a second chance in life,- said Amatong.
)o enable ex-convicts to start anew and truly live a reformed and productive life, a national policy
which will promote acceptance and non-discrimination should be put in place according to Amatong, a
vice chairman of the .ouse /ommittee on 0indanao Affairs.
Amatong filed .ouse 1ill 2340 or the proposed (5x-/onvict eintegration 6aw of 7082- which
provides that the "tate must help ex-convicts restore their dignity by creating an (incentive- system for
companies and individuals who would give them the second chance.
!n doing so, the bill provides the different sectors may learn to look at the past offenders with
sense of compassion and acceptance. !t further states that by giving former convicts better chance of
employment, the "tate is bound to benefit from the contribution of these future taxpayers.
)he proposal is in line with the constitutional provision that ()he /ongress shall give highest
priority to the enactment of measures that protect and enhance the right of all people to human dignity,
reduce social, economic and political ine9ualities, and remove cultural ine9uities by e9uitably diffusing
wealth and political power for the common good.-
)he bill, now pending at the /ommittee on :ays and 0eans chaired by ep. omero ;uimbo
#7
nd
$istrict, 0arikina /ity', provides that any company or individual who has hired an ex-convict within
five years from the service of sentence shall be entitled to avail of tax credit. )he tax credit shall be
collected immediately on the next tax period.
)he proposal covers all types of past offenders who have successfully served their sentence by
reason of full service, parole, pardon or probation.
)he tax credit shall amount to P3,000 or two percent of the basic salary of the ex-convict-
employee, whichever is higher upon the completion of the 87-month period of employment. )he
company or individual shall be entitled to a tax credit for the first 72 months of employment of the ex-
convict, the bill provides. #30' rbb
NR # 3572
AUG 28, 2014