Tuesday, 19 April 2011 08:22
Rep. Hermilando Mandanas (2nd District, Batangas), Chairman of the House Committee on Ways and Means, said his proposal aims to reduce the financial burden of pupils and students by exempting them from paying the documentary stamp on their school documents.
"Cognizant of the fact that most of our public school pupils and students are saddled with financial constraints, more often than not, these populace cannot even afford to buy books or sustain their schooling," said Mandanas, author of House Bill 4272.
Mandanas said the passage into law of his measure, must not alter the nature, admissibility and evidentiary purposes of the documents sought to be exempted from documentary stamp tax imposed by the BIR.
The bill seeks to amend Section 199 of the National Internal Revenue Code (NIRC) pertaining to documents and papers not subject to stamp tax.
The bill provides that certificates, diplomas, transcript of records and clearances issued to pupils and students by public elementary and secondary schools, or any office of DepEd shall not be subject to documentary stamp tax.
Mandanas said documentary stamp tax is an excise tax upon documents, instruments, loan agreements and papers, and upon acceptances, assignments, sales, and transfers of obligation, right or property incidents thereto.
"According to the BIR, all school levels must pay documentary stamp tax on their certifications, transcripts and other records. Otherwise, non-payment of document stamp tax will have the effect of non recording of documents in the government registry, inadmissibility as evidence in courts, non-acknowledgment by the notary public or other officer authorized to administer oath," said Mandanas.
Mandanas said it is not clear from the NIRC that certificates, diplomas, transcripts of records and clearances issued to public elementary and high school students are included in the documentary tax stamp coverage.
Mandanas said the quality of education of the youth is dependent on the ground level that will be provided for them. "Hence, a sound legislative policy for this vulnerable sector of our society will certainly improve their intellectual and moral development which is the noble intention of my bill."
source: www.congress.gov.ph
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