AUG.

23, 2012

NR # 2840

Committee on Ways & Means approves tax exemption of donations to rehabilitation centers for youth with disabilities
The House Committee on Ways and Means has approved a proposal to grant tax exemption to all grants and donations to city and municipal rehabilitation centers for children and youth with disabilities. The tax exemption proposal is provided in Section 9 of an unnumbered substitute bill to House Bill 3665 filed by Rep. Teddy Casio (Party-list, Bayan Muna), or the proposed Act Establishing City and Municipal Rehabilitation Centers for Children and Youth with Disabilities. The Committee on Social Services chaired by Rep. Arturo Robes (Lone District, San Jose del Monte City) which has primary jurisdiction over HB 3665 had specifically referred the tax exemption provision to the Committee on Ways and Means chaired by Rep. Isidro Ungab (3rd District, Davao City) for discussion and deliberation of its panel members. Section 9 provides that all grants, endowments, donations and contributions to the City and Municipal Rehabilitation Centers for Children and Youth with Disabilities for their actual, direct and exclusive use shall be exempt from donors tax and the same shall be allowed as deductions from the donors gross income for purposes of computing the taxable income of the National Internal Revenue Code of 1997, as amended. Casio said he filed the bill in line with the governments concern and responsibility to facilitate the rehabilitation of persons with disabilities as provided by Republic Act 7277 or the Magna Carta for Persons with Disabilities and the United Nations Convention on the Right of Persons with Disabilities. The State shall, therefore, provide for the rehabilitation and training of children and youth with disabilities to ensure their right to live freely and independently, and to achieve a more meaningful, productive and satisfying life, said Casio, Chairman of the House Committee on Small Business and Entrepreneurship Development. The bill provides there shall be rehabilitation centers for children and youth with disabilities in every city, municipality, or clusters of municipalities supervised by the appropriate provincial or city or municipal government. The Center may be located in an accessible existing structure with required facilities and equipment identified and provided by the host local government unit. If there is no existing structure, the provincial, city or municipal government may provide for the land,

construction of the rehabilitation center, and purchase of required equipment. Other allowable fund sources may also be tapped in establishing the rehabilitation centers, based on the bill. The bill further provides the location of the rehabilitation center shall be guided by population statistics of persons with disabilities as provided by the Department of Health. In order to facilitate community-based rehabilitation programs, satellite facilities may be put up in municipalities and barangays, as may be necessary according to the bill. The rehabilitation centers shall carry out the following functions: physical and social rehabilitation; education; psycho-social development (personality and career development, job and internship coaching, and orientation for potential employers); and information and resource center. (30) rbb