Sunday, July 13, 2008 RDC asks House to retain tax breaks for smaller coops
COOPERATIVES having an undivided net saving of not more than P10 million would soon be exempted from paying taxes.
This after the Regional Development Council (RDC) in Central Visayas has approved a resolution urging the House of Representatives to retain the tax exemption granted to cooperatives.
Savings
Republic Act No. 6938, or the Cooperative Code of the Philippines, provides that cooperatives with accumulate reserves and undivided net savings of not more than P10 million be exempted from paying tax.
Likewise, House Bill 184 proposes the adoption of the average paid-up share capital of P60, 000 per member as basis for granting tax exemption for cooperatives.
The Regional Development Council IV-A recently passed a resolution supporting the retention from amendment of tax exemption limit of not more than P10 million undivided net savings for cooperatives transacting business with non-members.
The resolution stated that exempting cooperatives from tax may help the development of the industry.
Willingness
It is also said the resolution could also discourage the willingness of cooperative members to contribute and increase their paid-up share capital.
“This in turn could adversely affect the cooperatives ‘ability to compete in the increasingly competitive business environment,” the motion stated.
Likewise, the Development Administrative Committee recommended that RDC 7 would support the proposal to exempt cooperatives from paying taxes. (GMD)
