Sunday, August 14, 2016
VAT TO CO-OPS, SOON?
Will cooperatives soon lose some of their tax exemptions under the administration of President Rodrigo R. Duterte?
A recent newspaper report*, quoting "highly-placed Palace and House sources said the Cabinet Revenue Cluster, headed by Finance Sec. Carlos Dominguez, is also considering lifting VAT exemptions on 30 products and services, and 13 types of transactions."
Reportedly, these will contribute to funding Pres. Duterte's first national budget.
Quoting further from said published report, VAT exemption is proposed to be lifted on
..."Sales by agricultural cooperatives duly registered and in good standing with the Cooperative Development Authority (CDA) to their members, as well as of their produce, whether in its original state or processed form, to non-members, their importation of direct farm inputs";
Gross receipts from lending activities by credit or multipurpose cooperative duly registered and in good standing with CDA; and sales by non-agricultural cooperatives, non-electric cooperatives; non-credit cooperatives duly registered with and in good standing with CDA.
(* Report published in Manila Standard, August 15, 2016, pp. A-1 & A-2, "VAT increase to 15% looms,"). (END)