Coop tax exemption retained under HB 5636 | BICOL TODAY

Coop tax exemption retained under HB 5636

By Felix ‘Boy’ Espineda, Jr.

QUEZON CITY – Before the scheduled recess next Friday, one hundred fifty eight House members signified their opposition to repeal the tax exemptions of cooperative provided by RA 9520, the Cooperative Code of 2008 propose under HB 5636 which is a substitution of fifty-five other House bills dealing with the Comprehensive Tax Reform Program, the first tax reform package under the Duterte administration.

The solons are opposed to a number of provisions in the CTRP including the lifting of the VAT exemptions for the cooperatives.

The copy of the latest version of HB 5636 emailed to by Deputy Floor Leader Anthony Bravo of COOP NATCCO PL contains the exemption of cooperatives such as the sales by agricultural cooperatives duly registered with the Cooperative Development Authority to their members as well as sale of their produce, whether in its original state or processed forms, to non-members. The importation of direct farm inputs, machinery, and equipment, including spare parts thereof, to be directly and exclusively in the production and or processing of their produce.

It also secured the exemption of gross receipts from lending activities of credit cooperatives duly registered with CDA and sales by non-agricultural, non-electric and non-credit cooperatives duly registered with CDA provided that the share capital of each member does not exceed fifteen thousand pesos and regardless of the aggregate capital and net surplus ratably distributed among the members.

President Duterte certified as urgent House Bill 5636 aimed to reduce income taxes but raising other levies including those of vehicles and fuels. The measure is to fund massive infrastructure build-up and big spending on human capital with social protection to the most vulnerable sector of society and perceive to address inequality and poverty. []

Posted by on May 31, 2017. Filed under Nation,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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