BIR to impose 5% tax on election campaign-related expenditures
By RG Cadavos
Maasin City, Southern Leyte (22 January) -- In the midst of the government's widening budget deficit, the Bureau of Internal Revenue (BIR) has been looking for an available sources for additional tax revenues.
In a press release sent to PIA, Chief Revenue Officer II Benjamin A. Mari based in Palo. Leyte said that the BIR will implement Revenue Regulations 8-2009, imposing the collection of five percent (5%) creditable withholding tax (CTW) on all election campaign-related expenditures, relative to the forthcoming May 2010 elections.
The letter stated that under RR 8-2009 as prescribed by Revenue Memorandum Order 35-2009, highlighting a special tax generating project which is dubbed as "Oplan IBOTO MO, with a sense of patriotic slogan "Buwis at Pagboto, Karapatan at Tungkulin Ko, all political candidates, political parties and their contributors are required to deduct the 5% cut from their payments made to their suppliers of campaign-related goods and services and remit the same to the BIR.
The BIR expects that candidates for national and local electoral posts, and their political parties and supporters will incur considerable campaign expenses.
It is also expected that the concerned individuals will cooperate and support the "Oplan Iboto Mo program of the government while proving their civic duty and patriotism by assisting in nation-building which can be attained with them being involved in complying with their share of tax responsibilities, the source further urged. (PIA-soleyte) [top]