The House of Representatives on Tuesday night approved on third and final reading a bill increasing the capitalization of Bangko Sentral ng Pilipinas from P50 billion to P200 billion.
“I hope that the increase will enhance the BSP’s viability to meet the needs of the growing economy, particularly in combating the rising inflation,” Eastern Samar Rep. Ben Evardone, chairman of the House committee on banks and financial intermediaries, said, referring to House Bill 7742,
Evardone said the BSP should pull its levers to minimize the impact on rising inflation on the daily wage earners.
Aside from the increase in capitalization, the bill also granted BSP tax exemptions from income of its governmental and regulatory functions, to enhance more its viability.
Tax exempt incomes include those earned from fund management, international reserve management and treasury operations, those earned from sale of acquired assets and consequent income of BSP being a lender of last resort, as well as those earned from activities being the sole issuer of currency, such as income from demonetization of currency, sale of commemorative notes, service fees for handling notes and coins.
Also exempted are income from activities as operator of payment systems, and other income arising from necessary and incidental functions as a central monetary authority. “‹
