Press Release
March 15, 2019

Sen. Bam: Provide tax relief in times of calamity

Calamity-stricken areas should be given tax relief for a period of at least one year to enable affected businesses and families recover from the loss of their financial resources, Sen. Bam Aquino on (date) said.

Aquino has introduced a measure in the Senate providing for exemption from payment of real estate, business and donor's taxes.

"This measure adds to the various initiatives of government, civil society and the private sector to strengthen our resilience to adversity and invigorate the spirit of bayanihan ingrained in the collective heart of Filipinos," Aquino said in his explanatory note of his Senate Bill No. 653.

"As we faced a number of terrible natural disasters in the past years, from super-typhoons to earthquakes and flash floods, we saw the bayanihan spirit of every Filipino eager to give their time and resources to suffering Filipino families," he added.

The senator said the tax system needs to be re-evaluated to ensure quick and efficient recovery from disasters of calamity victims.

"As such, this measure se

eks to relieve our countrymen affected by terrible distress of the burden of taxes to encourage a quicker recovery," Aquino said.

The proposed bill "Providing For Tax Relief in Times of Calamity" will make effective the exemption of payment of such taxes following the declaration of a state of calamity by the proper local Sanggunian.

"In support of our local entrepreneurs who provide for their families and generate jobs within their community through business, business establishments affected by a calamity shall be exempted from tax payments for a period of one year after the calamity," Aquino said.

He also called for the suspension of payment of real property tax in the calamity-stricken area for two fiscal years starting from the date of declaration of calamity.

Any donation in the name of any organization that declares that the funds donated shall be in favour of the victims of the calamity shall be exempt from donor's tax, the bill said.

The exemption from the donor's tax shall be applied automatically and the Bureau of Internal Revenue (BIR) shall not require any accreditation requirements, Aquino said.

The bill likewise safeguards donations to victims of calamities by allowing organizations exemption from donor's tax provided that at least 90 percent of the donations go directly to the affected community and not administrative costs.

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