THE Baguio-Benguet Community Credit Cooperative (BBCCC) has voiced out their opposition against several house bills repealing tax exemption granted to credit cooperatives in the country under Republic Act (RA) 9520 otherwise known as the Philippine Cooperative Code of 2008.
BBCCC manager Mary Ann Bungay said cooperatives are facing a threat anew as Congress is once again studying to put cooperatives under taxation by repealing Articles 60 and 61.
The related bills that were filed are House Bill 231 filed by Ilocos Sur Representative Eric Singson on June 30, 2016, Senate Bill 229 filed by Senator Franklin Drilon on July 4, 2016, House Bill 4688 filed by Rep. Joey Salceda on December 14, 2016 and House Bill 4774 by Quirino Rep. Dakila Carlo Cua on January 17, 2017.
“In BBCCC, there are around 15, 000 regular members. We have many members who are supporting us. We are also voters and we must be heard by the legislators,” Bungay said.
On April 17, through board secretary Joseph Porfirio Andaya, a resolution was issued objecting the house bills.
Under the RA 9530, cooperatives are exempted from paying tax. Under articles 60 and 61, cooperative are seen “tax makers” that enable their members to put up or run their enterprises, educate their children, and generally obtain loan to improve their lives and communities-and eventually enabling them to pay taxes. They are required by Article 86 of RA 9520 to set aside part 30 percent of their net surplus for community development and education and training of members.
In their resolution, BBCCC is seeking the help of Baguio Representative Mark Go, the authors of the bills, and Cabinet Secretary Leoncio Evasco Jr. requesting them to uphold and maintain the tax exemptions of the cooperatives and not to repeal Articles 60 and 61 of 9520.
The 1987 Constitution in Article XII on National Economy and Patrimony Section 15 mandates Congress to create “an agency to promote the viability and growth of cooperatives as instruments for social justice and economic development”, thus creating the Cooperative Development Authority by virtue of RA 6939 in 1990.
Other cooperatives in Baguio City and Benguet also joined the nationwide rally on April 29.