CHIZ WANTS DOC STAMP ON 'SANGLA' TRANSACTIONS REMOVED

With the economic crisis on hand, Senator Chiz Escudero wants the documentary stamp tax on pawned items whose loan value does not exceed P10,000 removed to give poor Filipinos a break.

Escudero has filed Senate Bill 3133 which would scrap the DST on the loan, or an equivalent of P30.

"This may not seem much, but a pawner can save P30 which is enough to buy a kilo of rice, or one-fourth kilo of chicken, or even a two-way MRT fare or a cellphone load. When one is pawning an item for only P200 or P500, the P30 can be significant," the senator said.

Escudero said his bill exempts the pledge of property covering a loan not exceeding P10,000. Under the National Internal Revenue Code of 1997, the DST for pledged items is P20 for the first P5,000 and P10 for the succeeding P5,000.

"It cannot be denied that the economic crisis will hit hard, and no other sector is more vulnerable than the poor," the senator said.

Escudero explained that his bill is part of Congress' efforts to provide relief to taxpayers, as it recognizes that taxation is not just about raising taxes but to accomplish non-revenue or social objectives as well.

"Faced with the current situation of the economy, any tax reform effort and revenue scheme should not only be judged according to its fiscal adequacy, equity, and administrative feasibility, but more importantly its impact on poverty," he added.

"Any bill that would alleviate the plight of our countrymen during this financial crisis should be given the appropriate attention," Escudero noted.

The Chamber of Pawnbrokers of the Philippines, Inc. (CPPI), an association of over 14,000 pawnshops nationwide, welcomed the proposed bill.

Romen Runas, an officer of CPPI, said most transactions below P10, 000 involve the C and D crowd. "We are talking of ordinary housewives and minimum wage earners who pawn personal belongings just to cope with the hard times," she added.

Runas said the CPPI welcomes the bill as it will greatly help their clients take out more from their loan, especially when the amount involved is just a few hundred pesos