AN ELECTION official backed the proposed tax to be imposed on campaign expenditures of politicians this coming May 2010 polls by the Bureau of Internal Revenue (BIR).

Commission on Elections (Comelec) Commissioner Gregorio Larrazabal said the proposal will now give them the way to "monitor the expenses of the candidates."

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But Larrazabal's view is contrary to the statement given by Comelec Chairman Jose Melo early last week.

Melo said there is no law that permits taxing on campaign contributions since Republic Act 7166 states that any electoral contributions shall not be subjected to the donors' tax or any forms of tax.

Larrazabal however maintained that nothing has been made definite yet since they are still discussing details of the BIR proposal.

"Until ma-implement na talaga, it's (still) a proposal... It's a novel idea," he told reporters.

Early this week, newly-installed BIR Commissioner Joel Tan-Torres vowed to strictly implement the proposal to impose a five percent tax on campaign expenses.

Larrazabal said poll officials have already met with Torres and they are now working on how it could be implemented.

Asked how they will implement this, Larrazabal said the BIR chief is proposing to require each candidate to retain the five percent tax and be the one to pay it to the BIR themselves.

"For example, you are a candidate, I am the supplier... you buy something worth P100,000... you pay me only P95,000, you retain the P5,000. At the end of the month, you'll pay the P5,000 to the BIR," he explained.

Larrazabal however declined to comment when asked how they could monitor those candidates that are under-declaring their campaign expenses.

'unconstitutional'

Lawyer Adel Tamano said the proposed five-percent tax to be imposed on political campaigns is "unconstitutional."

Tamano, who is running for senator under the Nacionalista party, said on Wednesday that the proposals on tax and revenue have to originate from the House of Representatives.

"It is also anti-democratic as there will be people who will want to help and they may not be big time businessmen," added Tamano. "If they know it's going to be taxed, it may discourage them (from giving)."

Revenue Regulation No. 8-09 requires all political candidates, parties, and contributors to effect a five-percent withholding tax on their campaign expenditures and contributions.

Political candidates and parties are also required to register with the BIR as withholding agent.

Nationalist People's Coalition (NPC) spokesman Representative Rex Gatchalian (Valenzuela, first district) said it is the Congress, which should discuss the matter.

"I'm not in favor of campaign tax because there are small contributors. Why tax if you just give a small amount?" Gatchalian said.

Act slowly

Makati Mayor and United Opposition (UNO) president Jejomar Binay on Wednesday cautioned acting BIR chief Torres to act slowly on proposals to impose a tax on campaign donations.

"The new BIR chief needs to be reminded that the Comelec and the political opposition had serious doubts on the legality and the propriety of the new tax measure slapping a five percent withholding tax on campaign expenses and donations," Binay said.

The opposition leader, who is also UNO's Vice Presidential bet in the 2010 elections, made the unsolicited advice after the new revenue chief vowed Tuesday to immediately implement the controversial tax measure on campaign spending.

The measure was met with criticism not only from the political opposition but other sectors of society who argued it favored moneyed candidates in the 2010 elections.

Binay likewise said that if it pushed through, those who supported the opposition may themselves be harassed and at the mercy of the administration.

"Aside from questions on its legality, the campaign tax favors moneyed candidates and administration-backed candidates who have access to national government resources. It would also cripple the opposition since the national government would now be able to pinpoint opposition donors from the business community," he said.

"Opposition donors will now be vulnerable to harassment, and will think twice about supporting those of us in the opposition. Clearly, the administration has found a convenient excuse to pin down opposition supporters especially within the ranks of the business community. As a result, businessmen would think twice before giving donations, and as a result they will be reluctant to donate to opposition candidates," he added. (MSN/Justine Paredes/Sunnex)