NPC, NP execs reject tax on campaign funds
JAM SISANTE and KIM TAN, GMANews.TV
11/04/2009 | 04:13 PM
Officials of two of the country's biggest political parties on Wednesday rejected the 5-percent tax that would be imposed by the government on the campaign funds received and spent for the 2010 elections.
At a weekly news forum in Quezon City, officials of the Nacionalista Party (NP) and the Nationalist People's Coalition (NPC) described as unconstitutional the newly-issued Revenue Regulation 8-09 of the Bureau of Internal Revenue (BIR).
"When you talk about tax and revenue measures, it always have to originate actually from the Lower House. That's in the Constitution," said NP spokesperson Adel Tamano, a lawyer by profession.
"Taxation is in the realm of Congress," said Valenzuela Rep. Rex Gatchalian of NPC.
The Commission on Elections (Comelec) is still determining the terms that would govern the proposed taxing of campaign contributions.
“The proposal is still being studied right now," Commissioner Gregorio Larrazabal told reporters in the poll body’s office on Wednesday.
Revenue Regulation No. 8-09 requires all political candidates, parties and contributors to effect a five-percent withholding tax on their campaign expenditures and contributions. It also requires all political parties and candidates to register with the BIR as a withholding agent.
The new regulation is part of the BIR's efforts to "maximize tax collections arising from campaign expenditures and contributions."
Larrazabal said BIR officer-in-charge Joel Tan-Torres recently went to the Comelec office in Manila to discuss the matter with chairman Jose Melo.
He said Melo appointed him and another Comelec official to determine the scope and limitations of the proposal, adding that they have yet to settle the final guidelines.
Gatchalian said taxing campaign funds would be unfair to small contributors. "There are small campaign contributors also who wish to be part of the process. If you're just going to give a small amount and you really want to make it count, why tax it?" he said. - GMANews.TV
At a weekly news forum in Quezon City, officials of the Nacionalista Party (NP) and the Nationalist People's Coalition (NPC) described as unconstitutional the newly-issued Revenue Regulation 8-09 of the Bureau of Internal Revenue (BIR).
"When you talk about tax and revenue measures, it always have to originate actually from the Lower House. That's in the Constitution," said NP spokesperson Adel Tamano, a lawyer by profession.
"Taxation is in the realm of Congress," said Valenzuela Rep. Rex Gatchalian of NPC.
The Commission on Elections (Comelec) is still determining the terms that would govern the proposed taxing of campaign contributions.
“The proposal is still being studied right now," Commissioner Gregorio Larrazabal told reporters in the poll body’s office on Wednesday.
Revenue Regulation No. 8-09 requires all political candidates, parties and contributors to effect a five-percent withholding tax on their campaign expenditures and contributions. It also requires all political parties and candidates to register with the BIR as a withholding agent.
The new regulation is part of the BIR's efforts to "maximize tax collections arising from campaign expenditures and contributions."
Larrazabal said BIR officer-in-charge Joel Tan-Torres recently went to the Comelec office in Manila to discuss the matter with chairman Jose Melo.
He said Melo appointed him and another Comelec official to determine the scope and limitations of the proposal, adding that they have yet to settle the final guidelines.
Gatchalian said taxing campaign funds would be unfair to small contributors. "There are small campaign contributors also who wish to be part of the process. If you're just going to give a small amount and you really want to make it count, why tax it?" he said. - GMANews.TV
