CALAPAN CITY, Philippines – The Bureau of Internal Revenue (BIR) has granted tax exemption to qualified cooperatives.
In a memorandum, BIR Deputy Commissioner Nelson Aspe directed its local office here to process and issue the Certificate of Tax Exemption (CTE) of legitimate cooperatives and for the revenue district office (RDO) to receive its annual income report so the cooperatives can continue their operations without fear of being branded as “illegal.”
Oriental Mindoro first district Rep. Rodolfo Valencia relayed the good news to some 100 members and representatives of 8,000 registered cooperatives in Oriental Mindoro, who trooped to his house over the weekend.
Valencia raised the concerns of cooperatives in Oriental Mindoro in a privilege speech last week and made representations with BIR Commissioner Kim Henares.
The lawmaker noted that Republic Act No. 9520, or the Cooperatives Law of the Philippines encourages the formation of cooperatives around the country to help in nation-building that they “deserve a preferential tax treatment because of the vital role they play in the attainment of economic development and social justice.”
Valencia said RDO 63 here, led by Salvador Lasala and Benjamin Cruz, “misinterpreted” the law when it denied the cooperatives of their needed CTE and assessed its taxes “way beyond the normal tax assessment” given by government.
The CTE is among the legal documents that cooperatives need to present in order to be able to transact business with clients and institutions.
Without CTE, the coops are unable to borrow loans from banks for specific project requirements, enter into business agreements, and win awards in competitive biddings, among others.