Bacolod solon eyes strengthening of agricultural coops
BACOLOD CITY -- Bacolod Lone District Representative Monico O. Puentevella recently filed House Bill 5180 seeking income tax and EVAT exemption for agricultural cooperatives.
The bill seeks to give more importance to the role of cooperatives in economic growth and development.
"In light of the worldwide financial crisis, the Philippines could be facing raised inflation rates and the lowered purchasing power of the peso while still recovering from the oil crisis which caused increases in the price of fuel, power generation and basic commodities.
Ultimately, these increases are passed on to the ordinary consumer who has to pay higher fares, electricity and water bills and expenses for basic commodities such as rice, bread, meat, and poultry products or canned goods," part of the bill's justification reads.
Puentevella also added that the importance of cooperative in this time of crisis cannot be overemphasized as it provides a perfect avenue for its members to band together and avail of privileges which the members cannot make use of as individuals.
House Bill 5180 likewise proposes EVAT exemption for agricultural/agro-industrial cooperatives for bulk purchases of goods integral to its purposes as a cooperative and in its operation to service the needs of its members.
Bulk purchases of livestock or fish stock, fertilizer, seed or seedlings, pesticides and other goods made by the cooperative for its use or for sale to its members should be exempt from EVAT according to the bill.
The bill also proposes income tax exemption for income generated from these sales as well as for the sale of the products or services offered by the cooperatives for a period of ten years. Under this proposed bill, the BIR is mandated to automatically audit these EVAT free purchases for tax purposes and the Cooperative Development Authority (CDA) to conduct the same for purposes of transparency and ensuring that the cooperative abusing the specific provisions of this act stands to have its accreditation with the CDA revoked and its officials charged and penalized according to the provisions of the Cooperative Code.
He stressed that this bill will see the emergence of cooperatives as a main contributing factor in the development of the agricultural sector in the rural areas and will be instrumental in ensuring food security for the country.