Bill exempts political parties from donor’s tax

February 04, 2019
Gloria Macapagal Arroyo

A HOUSE panel approved a measure that seeks to exempt from the donor’s tax all campaign contributions to political parties.

This provision was included in the Political Party Development Act, which was principally authored by Speaker Gloria Macapagal-Arroyo.

Members of the House Committee on Ways and Means agreed to approve the provision of the still unnumbered substitute bill to House Bill Nos. 522, 697, 1695, and 7088 which seeks to exempt from the donor’s tax all campaign contributions duly reported to the Commission on Elections in accordance with Section 13 of Republic Act No. 7166 or the “Synchronized National and Local Elections Act.”

Likewise, the provision proposes a P1 million maximum campaign contribution from a natural person and a P10 million maximum contribution from a juridical person.

However, the bill prohibits contributions from foreign individuals and entities.

On Oct. 10, 2018, the committee on suffrage and electoral reforms approved the other provisions of the proposed law.

Aside from imposing penalties on political turncoats, the bill also seeks to create the State Subsidy Fund (SSF) which would be used directly and exclusively for party development and campaign expenditures of accredited national political parties and would be included in the annual General Appropriations Act.

The bill specifically states the SSF distribution such as 5 percent for monitoring purposes and the conduct of information dissemination campaigns and voter’s education;  30 percent to accredited political parties represented in the Senate based on the number of seats obtained in the most recent general elections; and 65 percent  to accredited political parties in the House of Representatives based on the number of seats obtained in the most recent general elections.