Countryside poverty to increase due to coop tax exemption repeal – SIDECO | BICOL TODAY

Countryside poverty to increase due to coop tax exemption repeal – SIDECO

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By Felix ‘Boy’ Espineda, Jr.

SORSOGON CITY – The twenty-nine strong primary cooperative members of SIDECO (South-Luzon Federation of Cooperatives) are bracing for the possible impact on their members of the pending house bill that sought to repeal the cooperative tax exemption safeguarded by the Cooperative Code of 2008.

The repeal is one of the key issues included in the Comprehensive Tax Reform Program of PRRD administration aimed to widen the funding for social services and massive infrastructure program as key to alleviate the poverty situation which the coop sectors are opposing.

SIDECO board chairman Jenell Paghubasan said that the concept to tax cooperatives is out of reality since most of the coop members are denied financial assistance by government-owned financial institutions making them easy prey to loan sharks. Cooperatives are their avenue to avail fast loans with fewer collaterals charging less interest rate. Adding, we are the one substituting the needs of the lowly farmers, fisherfolks, micro vendors and our competition are those of street usurers. If the usurers bankroll the cash needs of our members the poverty situation will remain for a long time. Cooperatives are adding more life to the economies of this left-out sectors.To take out are tax exemptions is also a take-out of the income of our lowly members. We are more of service oriented than profit compared to commercial banks and other loan businesses.

The primary cooperative federated with SIDECO has majority members belonging to the less catered groups who eke out their living tilling farms, backyard gardens, small hatchery, piggeries and often referred to as the unaccounted millions who has an either a father, mother or sibling that are coop members. Within their ranks they supplemented family income either by taking a coop loan because of educational needs of the family, to start a micro business often cringing to the high cost of living.

In addition, Rodolfo Bonete, a director of SIDECO said we are contributors to our local economy as legitimate business enterprise such that putting a clamp on our members economic growth by repealing our tax exemption is an indicator that our productive value as one of the prime movers of a local economy is set aside by economic planners.

We are calling also to our district representatives and the senators for the retention of the tax exemption of cooperatives under RA 9520, the Cooperative Code of 2008. []

Posted by on May 12, 2017. Filed under Bicol News,Top Stories. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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