THE House Committee on Ways and Means chaired by Albay Rep. Joey Sarte Salceda on Tuesday approved the tax provisions of the unnumbered substitute bill to House Bill 9450, providing for the Revised Cooperative Code of the Philippines, a 2023 State of the Nation Address (SONA) priority measure.
The unnumbered bill, among others, exempts agriculture cooperatives from customs duties, advance sales or compensating tax on importation, and local purchase of equipment and machineries. The bill states that these tax and duty-free imports and local purchases shall not be sold nor the beneficial ownership be transferred to any person until after five years. Violators would be liable to pay twice the amount of the imposed tax or duties.
Under the measure, the Bureau of Internal Revenue would formulate the guidelines in streamlining the issuance of certificate of tax exemption for cooperatives.
The panel also approved the revenue provision of the unnumbered substitute bill to HBs 376, 2270, 4338, 6450, 8049, 8670, 9043, and 9442, renaming the Motor Vehicle User’s Charge to Motor Vehicle Road User’s Tax, and increase the rates thereof to fund the Public Utility Vehicle Modernization Program. The bill is another SONA priority legislation.
Approved in particular was the provision stating that revenues collected under the measure would be in addition to any appropriation granted annually to the Department of Public Works and Highways for road infrastructure construction and rehabilitation.
Also approved were the substitute bills to 1) HBs 2823, 5310, 7179, 7321, 7336, 7403, 7530, and 7699, providing for the Magna Carta for Taxpayers, and 2) HBs 7356 and 7757, providing for the regulation of the organization and operation of community groups also known as ‘paluwagan.’
Moreover, the panel also acted on House Resolution 1437, calling for an inquiry, in aid of legislation, into the reported inspection of a warehouse in Valenzuela City that led to the discovery of P1.428 billion worth of allegedly illegal e-cigarettes bearing the mark “Flava.” Members of the Committee resolved to subpoena Flava CEO Gen Vincent Serrano Fabro and COO Lilac Tayaban, as well as Denkat Trading owner Dennis Rostata, whose names were mentioned during the hearing.
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