The Manila Times - Marcos to BIR: Don’t tax small cooperatives

3 April 2016

By Jaime Pilapil | The Manila Times

Manila timesVice presidential candidate Ferdinand “Bongbong” Marcos Jr. reminded the Bureau of Internal Revenue (BIR) that small cooperatives are exempted from paying taxes.

The Ilocano senator also called on the cooperatives to expand and strengthen their ranks so that more benefits will be gained by their members.

“Tapat ang aking paniniwala na napaka-importante na kailangan nating pasiglahin ang movement, ang kilusan ng kooperatiba dito sa Pilipinas… malaki ang kakulangan ng suporta na ibinibigay ng pamahalaan sa kooperatiba (We should boost the cooperative movement. The support given by the government to cooperatives is not enough),” he said during the 10th General Membership Meeting of Southern Global Services Multi-Purpose Cooperatives held at the Lyceum University in Calamba City, Laguna.

Marcos united BIR Commissioner Kim Henares for continuing to extract taxes from small cooperatives.

“Nasa batas na ang isang kooperatiba na mas maliit sa P10 milyon ay tax-exempt. ‘Yun lamang, ang ating BIR ay panay pa rin ang tax ng ating mga maliliit na kooperatiba (Under the law, cooperatives with savings of less than P10 million are not required to pay taxes. But the BIR continues to collect from small cooperatives),” he said.

Marcos, vice chairman of the Senate Committee on Cooperatives, sponsored Senate Bill 2134, entitled “Cooperative Development Authority Charter Act,” which seeks to grant tax exemption to cooperatives with certificate of registration.

“That’s what we are pushing. I have included in the CDA (Cooperative Development Authority) charter that if you have been recognized as a cooperative by the CDA, that will be enough proof that you are a functioning cooperative.

Therefore, if you are a small cooperative, you are considered tax-exempt,” he said.