Question & AnswerQ&A (Republic Act No. 702)
Republic Act No. 702 is an Act that amends Section 48 of Act No. 3425, which provides for the organization and regulation of cooperative marketing associations in the Philippines.
The main purpose is to amend the law to grant exemptions to associations organized under the Act from the payment of merchant's sales tax, income tax, and other percentage taxes.
Section Forty-Eight (Section 48) of Act Numbered 3425 was amended.
Any association organized under the Act shall not be subject to the merchant's sales tax, income tax, and all other percentage taxes of whatever nature and description.
Yes, any exemptions under existing laws applying to agricultural products possessed or controlled by individual producers shall similarly and completely apply to those delivered by farmer members to the association or possessed/controlled by the association.
They are exempted from merchant's sales tax, income tax, and all other percentage taxes regardless of their nature or description.
The Act took effect upon its approval on May 9, 1952.
Yes, all associations organized under Act No. 3425 are covered under this amendment and the corresponding exemptions.
The exemption applies similarly and completely to agricultural products delivered by the farmer members or controlled by the association, as those applying to agricultural products in possession or control of individual producers under existing laws.
The exemption encourages the organization and operation of cooperative marketing associations by reducing their tax burden, facilitating marketing and distribution of agricultural products by farmers.