DAVAO CITY — Members of a national organization of cooperatives in Tagum City signed a manifesto Friday to oppose the repeal of tax exemptions granted to cooperatives.
The Philippine Cooperative Center in Tagum City joined 24,000 cooperatives to oppose moves to repeal the tax exemption provisions of the Republic Act 9520 known as the Cooperative Code of the Philippines.
The manifesto, already released in Manila last September 4, wants to “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.”
According to Philippine Information Agency dispatch, among those who signed was Norma R. Pereyras, chairperson of the Tagum Cooperative and one of the Directors of the PCC.
In the manifesto, the members made known their “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.”
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.”
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.
There are about 14 million members of cooperatives in the country.(davaotoday.com)
