A bill has been filed in the House of Representatives providing for a two-year moratorium on real property tax payments by victims of a disaster, as well as a tax exemption on donations for their relief and rehabilitation.
Bohol Rep. Arthur Yap said his measure was aimed at alleviating the suffering of calamity-stricken people by granting them a reasonable tax relief to help in their economic recovery.
Under current tax laws, relief for losses as a result of a calamity is granted only to individuals and corporations engaged in trade, business or the practice of a profession, said Yap, chair of the House reforestation committee.
Under his proposed Calamity Tax Relief Act of 2015, it shall be state policy to assist taxpayers affected by natural calamities through a tax relief to help them recover financially.
The bill would also grant a tax exemption to donors in order to encourage donations and maximize the amounts going to victims.
Under the measure pending in the House ways and means committee, the declaration of a state of calamity by the proper local council shall put the tax relief into effect. DJ Yap