Friday, September 18, 2015

Coops oppose repeal to tax exemptions



TAGUM CITY, Davao del Norte, Sept. 18 (PIA) — The umbrella organization of about 24,000 cooperatives in the country recently came up with a manifesto opposing moves to repeal the tax exemption provisions of the Republic Act 9520 known as the Cooperative Code of the Philippines.

Released on September 04, 2015, the manifesto was signed by Philippine Cooperative Center (PCC) Chairperson Hamilcar T. Rutaquio of the Tagalog Cooperative Development Center, PCC Vice Chairperson Ponciano D.Payuyo of the Philippine Federation of Electric Cooperatives, 13 PCC directors and three PCC officers.

Among the PCC directors who signed the manifesto was Norma R. Pereyras, chairperson of Tagum Cooperative.

The manifesto bears the title “Manifesto of Opposition to the Repeal of Articles 60 and 61 of Republic Act 9520 also known as the Cooperative Code of the Philippines, which Aims to Rescind the Tax Exemption Privileges of Cooperatives in the Philippines.”

The document expressed the signatories’ “strong and unyielding opposition to repeal of sections 60 and 61 of Republic Act 9520”, and their opposition “to the passage of House Bill 2765 authored by House Representative Gabriel Luis Quisumbing and Senate Bill 2048 authored by Senator Loren Legarda.”

House Bill No. 2765 is entitled as “An Act Rationalizing the Grant and Administration of Fiscal Incentives for the Promotion of Investments and Growth, and for Other Purposes, also known as the Fiscal Incentives Rationalization Bill”, while Senate Bill No. 2048 is “An Act Rationalizing the Grant and Administration of Fiscal Incentives for the Promotion of Investments and Growth and for other Purposes” or the “Consolidate Investments and Incentives Code of the Philippines Act”.
The final statement of the manifesto said that “We, therefore, register our demand for the deletion of all provisions in the bills listed above repealing Articles 60 and 61 of RA 9520 or the Cooperative Code of the 2008."

Article 60 of RA 9520 states that “duly registered cooperatives under the Code  which do not transact any business with non-members or the general public shall not be subject to any taxes and fees imposed under the in the internal laws or any other tax laws..”

Article 61 says that “cooperatives transacting business with both members and non-members shall not be subjected to tax on their transactions with members, including final taxes on members’ deposits and documentary tax.”

Article 61 of RA 9520 further says that “Cooperatives with accumulated reserves and undivided net savings of not more than P10 million shall be exempt from all national,  city, provincial, municipal and barangay taxes of whatever name and nature.  Such cooperatives shall be exempt from customs duties, advance sales or compensating taxes on their importation…”

Carrying the voice of more than 14 million members of 24,000 cooperatives in the country, the manifesto said that “removing tax exemptions of Cooperatives will deprive poor people the only organization that knows their conditions and which provide them what they need”.

“We believe that such move will directly ‘kill the cooperatives’ in the country which are the prime movers of the country’s economy,” the manifesto said.  (PIA-XI/ Jeanevive Duron-Abangan)

No comments:

Post a Comment