• Guideco Becomes Town Center thru Pinoy Coop ATM

    Guimbal, ILOILO -- This quaint town is a coastal fourth class municipality of 33,820 people.    Its 9 kilometers of scenic shoreline has attracted tourists, an industry that supplements its citizens’ agricultural livelihood.   In April 1993, the Southern Iloilo Development Read More
  • St. Vincent Ferrer Parish MPC Wins Bagwis Award

    ODIONGAN, Romblon –  NATCCO Network member St. Vincent Ferrer Parish Multi-Purpose Cooperative recently received the Bronze DTI-Bagwis Award for the excellent operation of its retail stores.   The Department of Trade and Industry, through the award, “gives due recognition to Read More
  • Co-op Opens Gas Station in Tagbilaran City

    TAGBILARAN CITY -- The Bohol Community Multi-Purpose Cooperative which has 1,000 members inaugurated on February 27 its own gasoline station.  Jannete Romero and Melchor Daniel, BCMPC’s Manager and Chairman, respectively, led the opening of the cooperative’s Phoenix Gasoline Station, the first Read More
  • Ang Hindi Nauulingan

    May kasabihan na: “Walang humahawak ng palayok na hindi naulingan.”  Dumating ang panahon na ginamit ito patungkol sa mga taong may kinalaman sa mga usaping salapi.  Tanggap ng marami na kapag pera ang pinag-uusapan, halos lahat na lang ata ay Read More
  • CDA Issues Order For Nutriwealth to Cease & Desist

    QUEZON CITY -- The Cooperative Development Authority (CDA) has ordered Nutriwealth Multi-Purpose Cooperative (NWMPC) to 1) stop accepting deposits from members and non-members, 2) return all deposits to the depositors, and 3) stop establishing and operating satellite offices without the prior Read More
  • Kaya Payment Platform used in e-cooptrade.coop

    MALATE, MANILA -- Kaya Payment Platform is now one of the payment modes for purchases done at the website e-cooptrade.coop.  The signing of the Memorandum of Understanding by three co-op federations was one of the highlights of the ASEAN Cooperative Business Read More
  • ASEAN co-op federations to redeem agri

    MALATE, MANILA – Cooperatives all over the ASEAN region have agreed to work together to gain control of the agriculture industry.   As Amir Islam an observer from Bangladesh said: “Landless workers simply provide labor to landlords and land-owning farmers are Read More
  • NPC Registration Deadline: March 8

    Cooperatives as Personal Information Controllers or Processors are mandated to comply with the Data Privacy Act (DPA), and are thus, required to register with the National Privacy Commission (NPC).  And the deadline is March 8.   This was the reply Read More
  • MSU-IIT NMPC Celebrates 40th Anniversary

    ILIGAN CITY – The NATCCO Network’s more than 800 member cooperatives join MSU-IIT National Multi-Purpose Cooperative celebrates on January 18 its 40th Founding Anniversary.   In a video posted on the co-op’s Facebook page, CEO Emma Nieva told all the members: Read More
  • Malabon Central Market Co-op Celebrates 40th

     MALABON CITY – Last September 14, 2017, the Malabon Central Market Development Cooperative (MCMDC) celebrated its Ruby Anniversary with activities throughout the day, which included an early morning mass, free eye check-up, reflexology, medical consultation, and haircuts to members and even Read More
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

No to Repeal of Cooperative Tax Exemptions

QUEZON CITY – Cooperators all over the country protested in various Regions since April 29 to oppose the proposed repeal or removal of tax exemptions enjoyed by cooperatives.  This culminated at the NCR Show of Force that protested outside the House of Representatives on May 4, where thousands of cooperators gathered, hoping Congress, particularly the House Ways & Means Committee, would hear their protest and remove the tax exemption on co-ops from the list of exemptions to be repealed.
 
Rep. Anthony Bravo, who represents the Cooperative NATCCO Party at the Lower House, speaking atop a truck, said the new tax measure would affect around 14 million cooperative members, who benefit from the lower loan rates, higher interest in deposits, and lower fees.
 
“Cooperatives give voice to the powerless. Today, we have over 25,000 cooperatives gathering together 14 million Filipinos partaking to the collective endeavor of helping each other address their economic, social and cultural needs.,” he said.
 
In terms of employment generation, cooperatives have also provided 463,789 direct employment and 1.5 million indirect jobs to vulnerable sectors like micro-entrepreneurs, according to Bravo.
 
“Cooperatives are also tax generators. In fact, they have remitted to the government 6.3-B pesos Withheld taxes in 2015,” he said.
The lifting of the tax exemption on cooperatives was among the features of the proposed Comprehensive Tax Reform Package recently approved by the House Committee on Ways and Means.
The bill puts forward a tax package that includes lowering personal income tax, but at the same time, imposes additional taxes on petroleum products, vehicle sales, and lotto winnings.
Section 20 of the bill states that services subject to percent tax would include “sales by agricultural cooperatives duly registered with the Cooperative Development Authority to their members as well as sale of their produce.”
 
The proposed measure would also impose tax on cooperatives’ “gross receipts from lending activities by credit or multi-purpose cooperatives” and “sales by non-agricultural, non-electric and non-credit cooperatives duly registered with the Cooperative Development Authority.”
 
The tax exemption granted to cooperatives is mandated under Republic Act 9520 or the Philippine Cooperative Code of 2008.
Bravo said cooperatives should retain their tax exemptions because they are non-profit “social enterprises” that provide services for its members.
 
“Cooperatives are not corporations that exist for profit; cooperatives are social enterprises that contribute and exist to serve their members, not to make a profit,” he said, adding that cooperatives, unlike private companies, do not issue stock or pay dividends to outside stockholders.
 
“Instead, earnings are returned to their members in the form of lower loan rates, higher interest on deposits, and lower fees,” Bravo said.
 
The lawmaker stressed that cooperatives should not be taxed because they do not generate profits.
 
He said the so-called “profit or surplus of cooperatives are actually “savings” generated out of the cooperative’s operations. The surplus generated was considered savings because the whole surplus is returned to the member-patrons in the form of interest on capital and patronage refund.
 
Bravo also said that cooperatives do not even have full discretion to use these surpluses.
 
Other speakers at the protest were former APEC Partylist Representative Ponciano Payuyo.
 
The action was launched by the Regional Cooperative Development Council of the National Capital Region, Philippine Cooperative Center, and the city cooperative unions and city cooperative development councils all across Metro Manila.
 
Republic Act 9520, requires cooperatives to set aside a portion of their net surpluses for the following: the Reserve Fund, the Cooperative Education and Training Fund, the Community Development Fund, and the Optional Fund.
 
Interaksyon.com, newscentral.ph, Erik Villanueva
 

Do you have exciting events in your coop? Share it with us, and we'll feature it in our website!

Email us:
This email address is being protected from spambots. You need JavaScript enabled to view it.

Mail your Documents to:
NATCCO Network
c/o Member Relations and Networking Group
227 J.P. Rizal Street Proj.4 Quezon City 1109

For more Information:
913.70.11-15 loc.310
912.54.10 (telefax)