|
THE
Malacañang decision to tap specific agencies to certify
and accredit charitable organizations as donee
institutions for tax-deduction purposes is meant to help
narrow the budget deficit and not to target groups
critical of the administration, officials explained
Wednesday.
In his
weekly news conference, Executive Secretary Eduardo
Ermita assured concerned nongovernment organizations
that the Department of Finance would consider their
sentiments when it drafts the implementing rules and
regulations for Executive Order 671, which President
Arroyo signed on October 22.
“Critics
of this issuance fail to appreciate the rationale why
this EO was issued in the first place, and instead
ascribe a political motive by the administration. The
primary intent of the executive issuance is to shore up
tax revenues in view of deficits in our revenue
collection,” Ermita said.
Under EO
671, the function of accrediting donee institutions was
transferred from the Philippine Council for NGO
Certification (PCNC) to the Department of Social Welfare
and Development, Department of Science and Technology,
Philippine Sports Commission, National Council for
Culture and the Arts, and the Commission on Higher
Education.
The
government bodies will handle the accreditation and
certification of donee institutions in their respective
fields, as part of government efforts to “strengthen the
regulatory functions of government agencies over
nonstock, nonprofit corporations, associations and
nongovernment organizations which fall under their
respective mandate”, said EO 671.
Ermita
said that Malacañang is counting on the “understanding”
of NGOs in relation to EO 761, especially at a time when
the government is bent on meeting its P63-billion
deficit target this year and a balanced budget next
year.
“At this
time, when the government is struggling to improve on
its tax collection with a view to balancing the budget
next year, we expect no less than the cooperation and
understanding of NGOs. There can be leniency in times of
plenty, but not in times of scarcity,” he said.
Ermita
assured NGOs, particularly those seen to be critical of
the administration, that they have no reason to worry
about EO 671 as their concerns “will be considered
highly by the Finance department in the guidelines that
will effect this issuance.”
“In the
meantime, let us have a moratorium on recriminations,”
Ermita said.
In
stressing government efforts to boost its revenues,
Ermita cited the International Monetary Fund’s [IMF]
recent assessment that the country’s revenue-generating
efforts still leaves much to be desired.
“Just
take a look at today’s news about the IMF, saying that
we need to improve on this aspect if we need to sustain
our economic growth, and you’ll know what I mean,” he
said.
Ermita
also said that tax payment is a “civil duty [of everyone
claiming to love the country], and the enjoyment of
certain tax incentives is a privilege, not an
entitlement.” |
