A RESOLUTION EXPRESSING THE STRONG OPPOSITION OF THE COOPERATIVE SECTOR 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
WHEREAS, the Cooperative Code of the Philippines (RA 9520) prescribes to give cooperatives tax exemption privileges. Among the non-taxable income of cooperatives are those derived from business transactions with members. Also, cooperatives with assets of not more than P10 million are exempt 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 them.”
WHEREAS, the tax exemption privilege of Cooperatives is a social justice measure and can never be considered as fiscal incentive to business.
WHEREAS, albeit cooperatives enjoy certain tax privileges, they are in fact tax makers by delivering into the government treasury some P4 billion a year thru the taxes collected from over half-a million of their employees. Apart from the taxes collected, around 1.9 million people are indirectly employed in the cooperative sector.
WHEREAS, five House Bills on the Rationalization of Fiscal Investment Incentives are presently being deliberated in the Lower House that include HB 2765 authored by Cebu 6th District Rep. Gabriel Luis Quisumbing, HB 302 by Tarlac 2nd District Rep. Susan Yap, and HB 1788 by Cagayan de Oro 2nd District Rep. Rufus Rodriguez and Abante Mindanao Partylist Rep. Maximo Rodriguez.
WHEREAS, similar measures were filed at the Senate, that include Senate Bill 2048 authored by Senator Loren Legarda, SB 987 by Senator Ralph Recto, and Senate Bill 35 by Senator Cynthia Villar.
WHEREAS, Rep. Quisumbing’s HB 2765 and Sen. Legarda’s SB 2048 expressly propose the repeal of the law granting tax exemption privileges to cooperatives.
WHEREAS, the Rationalization of Fiscal Investment Incentives has been certified as a priority legislation by President Benigno Simeon Aquino in his last State of the Nation Address (SONA).
WHEREAS, leaders of various cooperative federations and unions from around the country gathered in a meeting called by the Philippine Cooperative Center (PCC), the Apex Organization of the Cooperative Movement, in Quezon City, recently, where they agreed to campaign against the said provisions in the proposed law on the Rationalization of Fiscal Investment Incentives now pending in the House of Representatives and the Senate.
Resolution opposing the repeal of the Tax Exemption of Cooperatives
Page 02
WHEREAS, during the meeting conducted by the PCC, leaders and co-operators present agreed on the premise that the repeal of the tax exemption privileges of cooperatives is misplaced and defeats the role of cooperatives.
WHEREAS, as a result of the meeting, the cooperative movement, led by its Apex Organization, the Philippine Cooperative Center (PCC), is launching a nationwide campaign against the proposed Fiscal Investment Incentives bills and intensify their lobby against them in both houses of Congress. Hundreds of thousands of co-operators would hit the streets in Manila and key cities nationwide in October 2015 as a show of force against the proposed bills.
NOW, THEREFORE, on motion duly moved and seconded, be it resolved as it is hereby resolved to express the STRONG OPPOSITION OF THE COOPERATIVE SECTOR 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.
Signed this 07th day of September 2015, in Manila, by the members of the MARITIME MULTIPURPOSE COOPERATIVE.