Binay warns against tax on campaign contributions

MANILA, Philippines - Makati City Mayor Jejomar Binay yesterday warned that imposing a five-percent withholding tax on election expenses and contributions will make financial supporters of the opposition vulnerable to harassment.

“The Arroyo administration is putting the squeeze on the sources of financial support for the opposition,” he said.

Binay pointed out that the tax scheme would make campaigning more expensive and perilous for pro-opposition financiers because campaign contributors would be required to register with the Bureau of Internal Revenue.

“Clearly, the administration has found a convenient excuse to pin down opposition supporters, especially within the ranks of the business community,” Binay said.

“As a result, businessmen would think twice before giving donations, and as a result they will be reluctant to donate to opposition candidates,” he said.

Binay said the business community is very aware of the alleged vindictiveness of the present administration.

“A list of businessmen financially supporting the opposition would be heaven sent for this administration, which can then employ every trick in the book to harass and intimidate our financial backers,” he said.

The new tax requirement is stipulated in BIR Revenue Regulation No. 8-09.

Revenue officials said they have partnered with the Commission on Elections (Comelec) to ensure that candidates, their supporters and parties meet their tax obligations.

The BIR has failed to meet its January to September collection target, with collections totaling P839.8 billion or 4.6 percent lower than the amount recorded in same period last year.