The Chair of El Grande Multipurpose Cooperative and representative of Coop-NATCCO Party-list Donato Almador on Wednesday announced that cooperatives will stage a nationwide rally on April 29 against the proposed House Bill 4774 also known as the tax reform for acceleration and inclusion (TRAIN) bill.
Almador said the nationwide rally that identifies Davao City as the center for Region 11 is targeting about 5,000 protesters mostly cooperatives in the region. He said the rally will start from Freedom Park and ends at Rizal Park.
Speaking at Wednesday’s Habi at Kape, Almador told reporters they will raise the call to repeal the tax exemption for the cooperatives. He clarified they are not against the bill but only wants President Rodrigo Duterte to exclude cooperatives in the proposed new taxation scheme.
“If we will look into the cooperative’s help in the economic landscape if it will be taxable we cannot eat anymore. It is the only organization that can help people especially low- income people and the cooperative can offer them small amount that they can start their business without the collaterals,” he said.
Almador said that once the cooperatives are taxed they can no longer extend help to their members of the community. He said the net of cooperatives every year is not for the coop but for the members in terms of dividends. He said the cooperative itself has no share on the profit.
Based on the Department of Finance’s (DOF) website, the new version of the proposed TRAIN is now under study by the House Ways and Means Committee exempting from the personal income tax (PIT) those with a net taxable income of P250,000 or below, while still retaining exemptions on the first P82,000 earnings of taxpayers from their 13th month pay and other bonuses.
Under House Bill 4774, the top PIT rates will also be reduced from 32 percent to 25 percent over time, except for the very rich, making the system truly progressive because low- and middle-income taxpayers will enjoy an increase in their take-home pay as a result of their would-be lower tax payments. Maya M. Padillo