PRESS RELEASE
January 28, 2025
PASAY CITY- Congress session in both houses is in full swing hearing numerous proposed measures before it will be on recess on February 7.
In the Senate, the Revisions to the Philippine Cooperative Code of 2028 or Senate Bill 2811, authored by Senator Imee Marcos, Senator Jinggoy Estrada, Senator JV Ejercito, and Senator Loren Legarda is up for discussion and debate during the plenary and is expected that the position of Department of Finance to impose taxes on share capital and deposits of cooperatives and its members will be brought up, including some measures that will roll back the gains of the cooperative movement.
The Proposal of the Department of Finance to tax the gains of cooperatives, particularly with respect to members’ share capital and deposits, represents a significant disregard for the State policy aimed at utilizing cooperatives as instruments for poverty alleviation among ordinary Filipinos. Furthermore, it fails to acknowledge the vital role that cooperatives play in the process of nation- building.
The cooperative movement is not a push over and that cooperatives have played a big part in the growth of our nation and economic development because cooperatives are social enterprises that promote social justice and helping the government in poverty eradication.
Cooperatives are social enterprises, not merely business organizations. The Department of Finance (DOF) must acknowledge cooperatives’ vital role in improving the lives of the unbankable and the poorest among us. Although these individuals are often classified as high-risk by the banking system, cooperatives work diligently to meet their needs.
In G.R. No. 182722, Dumaguete Cathedral Credit Cooperative (DCCCO), the Supreme Court said:
“In closing, the cooperatives, including their members, deserve a preferential tax treatment because of the vital role they play in the attainment of economic development and social justice. Thus, although taxes are the lifeblood of the government, the State’s power to tax must give way to foster the creation and growth of cooperatives”.
UNITED MOVEMENT FOR THE ADVANCEMENT OF COOPERATIVISM
The Cooperative movement is mobilizing at the Senate on January 28, 2025 (Tuesday) to demonstrate their opposition to the proposals from the Department of Finance, and to remind our highly esteemed Senators the true value and contributions of the cooperative movement in creating wealth and fostering development in both the countryside and the nation as a whole.
As such, all tax exemptions and privileges accorded to Cooperatives, at all cost, must be protected, and in fact, must be further improved or enhanced. The tax exemption for cooperatives is a strategic policy tool that supports inclusive economic growth, financial stability, and social equity. Instead of focusing on maximizing profits, cooperatives reinvest their earnings in community development, climate resilience, and member welfare, making them key players in sustainable local economies.
Contact Persons:
Edwin A. Bustillos, COOP CHAMBER
Mobile No. 09178017309
Carl Duenas, COOP NATCCO Party LIst
Mobile No. 09493058837
Diosdado L. Luna, Natcco Network
Mobile No. 09175198433
Cheska Guinto-Garais, Philippine Cooperative Center
Mobile No. 09171237202
Chair Misael Melinas, National Federation of Transport Cooperatives
Mobile No. 09183490481
