A BILL seeking to let local governments grant tax relief to communities hit by calamities was filed in the House of Representatives last month.
House Bill No. 6256 seeks to grant a two鈥憏ear real property tax break in areas placed under a state of calamity by local governments, while exempting donations to disaster鈥憇truck regions from donor鈥檚 taxes.
The Philippines is among the world鈥檚 most disaster-prone countries, with storms and monsoon rains routinely inundating towns and cities.
The Southeast Asian nation has so far been hit by 22 storms this year, with a series of strong typhoons in late October leaving hundreds dead and causing billions of pesos in damage.
鈥淕iven our country鈥檚 vulnerability to natural disasters, the government needs to strengthen its disaster prevention and response program, and at the same time enact fiscal measures that will provide tax exemptions in times of calamity,鈥 Nueva Ecija Rep. Mikaela Angela B. Suansing said in the bill鈥檚 explanatory note.
She said the current tax system hampers the 鈥渆xpeditious flow鈥 of donations, affecting aid rollout. 鈥淯nder the law, entities and individuals who intend to donate huge sums of aid must pay a substantial donor鈥檚 tax.鈥
Donations exceeding P250,000 are subject to a 6% donor鈥檚 tax, according to the 2018 Tax Reform for Acceleration and Inclusion Act.
鈥淪uch may only be exempted from taxes and import duties if these are channeled through certain government offices,鈥 Ms. Suansing said, referring to the Social Welfare department and the National Disaster Risk Reduction and Management Council. 鈥淭his issue is further compounded by the fact that not all organizations involved in relief operations are accredited by the State.鈥 鈥 Kenneth Christiane L. Basilio
