LOCAL politicians are apprehensive with the move of the Bureau of Internal Revenue (BIR) to impose tax on all political contributions with many saying this may favor rich candidates but discriminate the poor.

Misamis Oriental Governor Oscar Moreno said the order may have to be scrutinized further by both the Senate and the Lower House, both of which will have to craft legislation before the taxation scheme can be implemented.

Then again, Moreno said the resulting legislation can be vetoed by President Gloria Macapagal Arroyo.

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“The idea is good because it will also help on revenue collections pero angay pa tukion because there should be a law concerning tax on contributions,” Moreno added.

The BIR had issued an order last month setting a five-percent withholding tax on all political contributions and campaign expenditures for candidates running in the May 2010 polls.

The BIR had claimed that the order was intended to maximize the tax collections from campaign expenditures and contributions.

Under the Omnibus Election Code, electoral contributions can be in the form of “gift, donation, subscription, loan, advance or deposit of money or anything of value, or a contract, promise or agreement to contribute.”

For his part, City Councilor Reynaldo Advincula said he is in favor with the BIR scheme but said only national candidates particularly those running for President should be covered since they are the ones with huge campaign budgets.

“Maayo hinuon na labina nga 95 percent sa mga congressmen mga kawatan,” Advincula told Sun.Star by phone.

But Advincula said the BIR order should not be applicable to local candidates since local expenses are negligible.

“Dapat nay exact nga basehanan ang BIR sa pagkuha nila og tax,” added Advincula.