PRESS STATEMENT
For Immediate Release February 19, 2026
BALANCING REFORM WITH REALITY:
Coop Chamber Urges CauBon on OECD Proposal to Tax Social Services and CooperaBves
The Philippine Chamber of Cooperatives (Coop Chamber) acknowledges the recent economic surveillance report by the Organisaton for Economic Co-opera-on and Development (OECD). We recognize the value of the OECD’s expertise in promo-ng fiscal sustainability and we share the government’s objective of strengthening the country’s revenue base for natonal development.
However, we respectfully submit that the recommendation to phase out Value Added Tax (VAT) exemptions for Cooperatives, Senior Citizens, Education, and Healthcare requires careful recalibration. While “broadening the tax base” is a sound theoretical principle, its application must be tempered by the developmental context of the Philippines.
The OECD suggests replacing tax exemptions with “targeted direct subsidies” to improve efficiency. While we do not subscribe to this approach in principle, we recognize the need to remain pragmatic in light of operational realities.
In the Philippines, where social transfer mechanisms are s-ll being modernized, the current VAT exemption func-ons as the most immediate and effective subsidy for the vulnerable. It provides instant relief at the point of sale for our elderly, students, and pa-ents. We urge the government to retain these exemptions un-l such -me that a seamless, fully inclusive direct subsidy infrastructure is firmly in place. To remove the exemption now would be to remove a safety net before the alternative is built.
We specifically caution against the categorization of Cooperative tax privileges as “fiscal incentives” that require rationalization.
Cooperatives are distinct from standard profit-oriented corpora-ons. We are social justice enterprises mandated by the Constitution to foster self-reliance among the marginalized. Our “surplus” is returned to members to aid in their livelihood. Treating this surplus as taxable corporate income would inadvertently penalize the very financial inclusion that the State, and indeed, the OECD itself, seeks to promote.
We note that the OECD champions the framework of “Inclusive Growth” and the “Social and Solidarity Economy.” We believe that fiscal policy should be harmonized with these broader goals.
Removing tax exemptions for cooperatives and essential social services would increase the cost of living, potentially widening the inequality gap. We believe that true efficiency lies not just in revenue numbers, but in the well-being of the citizenry.
Philippine Chamber of Cooperatives Inc. SEC Registra-on No. 202307010953-3002 No. 20 Stanford St., Brgy. Socorro, Cubao, Quezon City
OUR COOP, OUR VOICE!
Philippine Chamber of Cooperatives Inc. SEC Registra-on No. 202307010953-3002 No. 20 Stanford St., Brgy. Socorro, Cubao, Quezon City
We urge the Department of Finance (DOF) and the Congress to adopt a nuanced approach to these recommenda-ons. The Philippines is not a laboratory for theore-cal tax purity; it is a na-on striving for equitable progress.
We call on our legislators to PROTECT the tax status of Coopera-ves and the VAT exemp-ons for Senior Ci-zens, Educa-on, and Health. Let us work together to find fiscal solu-ons that ensure stability without compromising the welfare of the Filipino family.
NOEL D. RABOY
Chairperson
Philippine Chamber of Coopera-ves, Inc. (Coop Chamber)
For Media Contact:
EDWIN A. BUSTILLOS
Secretary General
Philippine Chamber of Coopera-ves, Inc. (Coop Chamber) Email: coopchamber.ph@gmail.com
Website: hkps://coopchamberph.org/
Facebook: Coop Chamber PH
Phone: +63 917 801 7309
Address: #20 Stanford St., Araneta Center, Cubao, Quezon City
