Cooperatives oppose repeal to tax exempt privilege anew
October 14, 2016
VENUS MAY H. SARMIENTO
DAGUPAN CITY, October 14 (PIA) –
Cooperatives in Ilocos region is uniting again in one voice to oppose
the repeal of the law granting tax exemption privileges to this sector.
Executive Director Ray Elevaso of the Cooperative Development
Authority said cooperatives are facing a great threat anew as the
Congress under the new administration is once again studying to put
cooperatives under taxation through the repeal of Articles 60 and 61.
It can be recalled that in September 2015, cooperative members were
enjoined to wage a massive campaign to oppose the proposed bills on the
Rationalization of Fiscal Investment Incentives, pending in the House
of Representatives and the Senate. The repeal of Articles 60 and 61 of
Republic Act 9520 or the Cooperative Code of the Philippines embodies
the deletion of the provisions granting cooperatives tax exemptions.
“We are under threat again because there is a move anew to remove the
tax exemption privilege for cooperatives. We must there fore unite to
show that CDA is against poverty,” Elevaso said during the opening of
the regional cooperative month celebration held in Dagupan City.
Elevaso said cooperatives are voluntary organizations of people who
want to improve their economic lives by their own initiatives and by
their own resources.
For his part, CDA Chairman Orlando Ravanera said there is no need for
the repeal as cooperatives are taxed in so many ways including
education and training.
In Region I alone, the total amount of tax withheld reached P53,774.
794. This includes taxes withheld for employees’ salary (P25 million),
honorarium (P11 million), interest in share capital (P8 million) and
others (8 million).
“Tax is the lifeblood of the government, however, programs should bow
down to the principles of social justice,” Ravanera said during a press
conference with Pangasinan media.
Articles 60 and 61 of Republic Act 9520 give cooperatives
tax-exemption privileges. Among the non-taxable incomes of cooperatives
are those derived from transactions with their members.
Also, cooperatives with assets of not more than P10 million are
exempted from “all national, city, municipal or barangay taxes. They are
also exempt from customs duties, advance sales or compensation taxes on
their importation of machineries, equipment and spare parts used by
The creation of the CDA is mandated in section 15, Article XII of the
Constitution, which makes it a policy of the State “to promote the
viability and growth of cooperatives as instruments of equity, social
justice and economic development.” (JNPD/VHS/PIA-1,Pangasinan)
The Author has decided to remain behind the shadows, believing that the content of this blog should speak for itself, and that the readers should not be distracted by the identity of the Author.
Suffice it to say, for the moment, that the Author is a cooperative educator accredited by the Asian Confederation of Credit Unions; with 25 years hands on experience with policy making and direction of community type credit cooperative, particularly in the capacity as member of its Board of Directors.