THE cooperatives in Region I renewed their call to oppose the proposed bills on the Rationalization of Fiscal Investment Incentives pending at the House of Representatives and the Senate.

The repeal of Articles 60 and 61 of Republic Act 9520 or the Cooperative Code of the Philippines will result in the deletion of the provisions granting cooperatives tax exemption among which are the incomes of cooperatives derived from transactions with their 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.”

Executive Director Ray Elevaso of the Cooperative Development Authority said cooperatives are facing a great threat anew as the Congress under the new administration is again considering to put cooperatives under taxation through the repeal of Articles 60 and 61.

Chairman Orlando Ravanera said there is no need for the repeal as cooperatives are taxed in so many ways including education and training.

In Region I alone, the total amount of tax withheld reached P53,774. 794.  This includes taxes withheld for employees’ salaries, honoraria, interests in share capital.  (PIA-Pangasinan)

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