Neda adds 3 gov’t programs in pitch for tax-free donations

The state planning agency National Economic and Development Authority (Neda) has added three more government programs in the list of its priorities wherein donors enjoyed tax-exemption.

In an April 8 document, Neda said now included in the 2022 national priority plan (NPP) were two programs of the Department of Agriculture (DA) plus one program of the Department of Science and Technology (DOST).

In particular, added to the 2022 NPP were the DA-Sugar Regulatory Administration’s (SRA) sugarcane farm mechanization, as well as water management/irrigation support for sugarcane farms projects.

Meanwhile, the DOST-Science and Technology Information Institute’s (STII) “DOSTv: Science for the People” program was likewise made part of this year’s NPP.

Last February, Neda listed down a total of six programs and projects — three of the DOST, two of the DA, and one of the Department of Education (DepEd) — as part of the NPP.

READ: Neda dangles tax-free perks to 6 gov’t programs’ private donors

A Neda circular in 2009 allowed its Director-General to add priority programs, activities and projects to the yearly NPP “at any time during the taxable year.” As such, this year’s priority list was now longer than the eight programs included in last year’s NPP.

The government seeks donations from the private sector for the NPP every year, so it could reallocate scarce public resources into other developmental projects.

Under the Tax Code, any program, project or activity identified in the annual NPP extends to individual and corporate donors full deduction of their monetary donation from taxable income during the year they donated.

Donors claim their tax deductions when they file their annual income tax returns (ITRs) the following year.

In order for donors to avail of their tax-free incentive, Neda grants them a certification of inclusion in the NPP.

The NPP lists down the national government’s priority programs and projects in the economic development, education, health, human settlements, science and culture, and youth and sports development sectors.