CEBU CITY, Dec. 10 (PIA) -- Almost one thousand members of cooperatives from around the country gathered recently in Cebu calling for the abolishment of the tax repeal which serves as their protection from tax payment.
During the National Summit of Cooperatives held at Waterfront Hotel, this city, cooperative members crafted a position paper to cement their stand against the tax repeal being pushed in Congress.
Cooperatives has long since been exempted from paying taxes to enable them to "develop into viable and responsive economic enterprises" that helps them to fulfill their purpose of serving the needs of its members.
Cooperative Development Authority (CDA) Chairman, Usec. Orlando Ravanera, believes that with the tax repeal, the cooperatives in the Philippines are facing a bigger threat to their continued growth.
Ravanera has expressed his firm support to the 11 million cooperative members in their appeal to congress as the tax repeal would also mean the removal of their distinction from corporations.
During the summit, Cebu Gov. Gwen Garcia recalls how her family started and developed one of the biggest cooperatives in the province, Cebu CFI Cooperative.
The cooperative started with 29 members and only P200.
"I still remember the presence of cooperatives being real to our family. Makahinumdom ko nga akong mama sauna mu ingon gyud nga muhapit sa mi sa coop before muuli para naay pang sud'an ugma", said Garcia as she recalls the financial help the cooperative has provided her and her family in its early years.
One of the guests during the summit was former congressman Pablo Garcia who is the founder and head of the Cebu CFI Cooperative.
Garcia expressed his support against the tax repeal.
Republic Act 9520, also known as Philippine Cooperative Code of 2008, states that "cooperatives transacting business with both members and non-members shall not be subjected to tax on their transactions with members. In relation to this, the transactions of members with the cooperative shall not be subject to any taxes and fees, including but not limited to final taxes on members' deposits and documentary tax." (smb/pia7)