BAPCU (Bicol Association of Private Colleges and Universities) June 4, 2021 Dear Mr. President, AN URGENT PLEA FOR INTERVENTION Petition by 600 Private Education Stakeholders to Correct the Damaging, Discriminatory and Illegal Provision in BIR Revenue Regulation 5-2021 On behalf of the Coordinating Council for Private Educational Associations (COCOPEA), Davao Colleges and Universities Network Inc. (DACUN), Association of Private, State Colleges, Universities in Region XI (APSCUR XI), and hundreds of educational, parent, alumni and employee associations from around the country, we respectfully seek your help in correcting the errors in the BIR’s Revenue Regulation RR 5-2021, which directly contradicts the provisions and the spirit of both the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) and the Constitution. Whereas CREATE, Congress and your Administration sought to shore up proprietary educational institutions during the pandemic with a much-appreciated temporary reduction in the tax rate from 10% to 1%, RR 5–2021 will instead cause irreparable damage to the institutions that you sought to help, by more than doubling their tax rate by 150%, from the 10% that has been applied to them since 1968, to 25%. Simply put, RR 5-2021 will severely harm the schools, parents, students, teachers, employees and, other stakeholders in the private education sector, which is a large and vital partner of the government in providing quality education nationwide. Currently, there are over 6.1 million students enrolled in almost 15,000 private educational institutions across the country, based on CHED and DepEd data. The current faculty and staff of the private educational institutions total over 400,000. The erroneous provision of RR 5-2021 will add a heavy additional burden to the many stakeholders of the private education sector, at a time when we are already fighting for our survival. Our sector has not yet recovered from the debilitating effects of the K- 12 Law, and is in the midst of struggling with the steep drop in enrollment caused by the pandemic. RR 5-2021 will be the straw that breaks the camel’s back. Many individuals will be directly affected by RR 5-2021, such as our academic, athletic, working student and needs-based scholars, and our faculty and staff. Members of the communities built around schools, such as school uniform sewers, cafeteria workers, carinderias, sari-sari stores, dormitories, janitorial/security 1 BAPCU (Bicol Association of Private Colleges and Universities) services, school bus drivers/helpers, bookstores, book suppliers, and informal businesses around the campuses, will also be severely affected. In the last five years, your Administration has mounted many initiatives that have made education more accessible and affordable by strengthening the complementary roles of the public and private education sectors in an integrated education system. The enactment of your landmark and widely hailed Universal Access to Quality Tertiary Education Act (RA 10931), the Tulong Dunong Program, and the educational assistance programs under the Bayanihan 2 such as the Bayanihan 2 for Higher Education Tulong Program (B2HELP), the CHED-DOLE Tabang OFW Program, and the GSIS and Landbank Educational Loan Programs, have all contributed significantly to making private education accessible to students, especially the underprivileged. Mr. President, we thank your wholeheartedly, for all your efforts to help the poor. You have truly earned your place as a staunch champion of education by providing access to quality education for deserving students who cannot afford it. However, the benefits of your legacy could very well be canceled by RR 5-2021. We appeal to you, Mr. President, to make our tax laws consistent with your vision and the constitutional mandate of ensuring access to education for all Filipinos. Specifically, RR 5-2021 unilaterally and illegally inserted wording inconsistent with both Section 27 (B) of the Tax Code as amended by CREATE, and the Constitution. We appeal for your intervention because we have exhausted all other administrative avenues by requesting various government offices, including the Bureau of Internal Revenue and the Department of Finance, to revisit and reverse those provisions of RR 5-2021, to no avail. This will cause irreparable harm to the private education sector and its many stakeholders. We come to you Mr. President as the final arbiter for administrative remedy and the ultimate protector of our many stakeholders. We know how much you value education and its key role in alleviating poverty alleviation. We hope and pray that you can correct this egregious injustice. 2 BAPCU (Bicol Association of Private Colleges and Universities) Below are the signatures of 600 private education stakeholder groups who are petitioning you to consider our urgent appeal, which is detailed in the enclosed statement of COCOPEA (please see Annex 1 below), the umbrella organization of 5 leading private education associations, with over 2,500 educational institutions as members. Respectfully, Maraming Salamat Po! Very truly yours, 3 BAPCU (Bicol Association of Private Colleges and Universities) 4 600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021 Region: Name of School/PTA/Faculty Republic Central Colleges Club Angeles City 1 LORMA Colleges City of San Fernando Proverbsville School, Inc. Angeles City Northwestern University Laoag City Baliuag University Baliwag Rowel Advincula Crisostomo Malasiqui Mapua University Bocaue Metro Dagupan Colleges Mangaldan College for Research & Region: Technology of Cabanatuan 2 UPHS Isabela Cabanatuan Cauayan City College of the Immaculate Mallig Plains Colleges Inc. Conception Cabanatuan City Mallig CAPRISAA -CABANATUAN Mallig Plains Colleges Inc. PRIVATE SCH. ADM. ASSOC Mallig Cabanatuan Nueva Ecija Mallig Plains Colleges Inc. Camiling Catholic School, Inc. Mallig Camiling Mallig Plains Colleges Inc. BC ACHIEVERS INTEGRATED Mallig SCHOOL INC General Tinio University of Cagayan Valley Tuguegarao City St. Peter of Verona Academy Inc. Region: Hermosa 3 Regina Barbara Children's Inst. Aliaga New Life In Christ Academy Inc. Licab Regina Barbara Children's Institute, Inc. Aliaga Mapua University Manila Regina Barbara Children's Institute, Inc., Aliaga Mapua University 600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021 Manila San Sebastián Cathedral School Auxillary Academy of Tarlac Inc. Tarlac Meycauayan Mapúa University St. Michael Academy of Tarlac City Meycauayan, Inc. Meycauayan Brian Harvey A Villanueva Nampicuan Christian Academy Tarlac City Nampicuan Genova Technological Institute, Subic Bay Colleges (SBCI), Inc. Inc. Libmanan Olongapo City Region: 5 LA CONSOLACION COLLEGE Academia De Pulilan Inc. Baao Pulilan Don Gregorio O. Balatan University of Nueva Institute Caceres/Parents Teachers Balatan Council San Fernando La Consolacion College Baao,Inc. Mary Nymph Montessori School Baoo San Fernando PASACAO ACADEMY,INC. Central Luzon College of Basacao Science and Technology San fernando Mataas na Paaralan ng Pagatpatan STI College San Jose Bato San Jose City Ocampo Academy Admin & Management Technological Institute, Inc. San Jose del Monte Bato Bethel Educational Center BUHI LYCEUM, INC. SDUMC Inc. Buhi Sto. Domingo Bula Parochial School Royal Heir Christian Academy Bula Talavera 600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021 Faculty and Employees of Our Lady of La Porteria Mabini Colleges Union Daet Academy Calabanga MABINI COLLEGES GENETAL Dominican School of Calabanga ALUMNI ASSOIAOON Daet Calabanga Mabini Colleges, Inc. DOMINICAN SCHOOL OF Daet CALABANGA Calabanga ALFELOR SR. MEMORIAL Parents Council COLLEGE Del Gallego Calabanga Instituto De Caceres - Goa Inc. SUNNY SMILES MONTESSORI Goa INC Calabanga La Consolacion College Iriga SPJ International Technology and Baao Iriga City Institute,Inc Calabanga University of Northeastern Nuestra Senora dela Salud Philippines Iriga City Family Rural School inc Calabanga Ezer Christian School of Light and Life Montessori School Libmanan Inc. Libmanan of Learning Inc. Calabanga Colegio dela Virgen del Pilar Kurtland Grade School, Inc. (CVP), Inc. Lupi Canaman Colegio dela Virgen del Pilar AERONAUTICAL ACADEMY (CVP), Inc OF THE PHILIPPINES (AAP), Lupi INC. Canaman Prince Thad Montessori School, Inc. United high school, Inc. Magarao Caramoan Prince Thad Montessori School, Inc. 600 Private School Co-signatories the Appeal to President Rodrigo Duterte for the Correction on Provisions of RR5-2021 Magarao University of Nueva Caceres Bermudez center for arts and Federation of Faculty Clubs Naga City technology, Inc Minalabac University of Nueva KING THOMAS LEARNING Caceres/Federation of Faculty Clubs ACADEMY, INC. N/A Naga City Carmen Dapilos KING THOMAS LEARNING ACADEMY, INC. Naga City N/A University of Nueva Caceres St. Jude Thaddeus Learning General Alumni Association Center. Inc Naga City Nabua Felix Alfelor Sr. Foundation EZER FOUNDATION SCHOOL College OF NABUA Not a City Nabua Felix Alfelor Sr. Foundation FACULTY CLUB Collee Naga Not a City SSMI Felix Alfelor Sr. Foundation College Naga Not a City Fortunate Rays Learning Center Little Blessings Learning Center, Naga Inc. Ocampo Carbeth Victory Academy Naga PHILIPPINE COMPUTER FOUNDATION COLLEGE, INC. Pili Partido College, Inc. Naga Mama Mary Learning Center Inc. UNC