Malacañang Thursday urged political parties and candidates to comply with the taxation on election expenses and set an example for their constituents.

If they have complaints, Deputy Presidential Spokesman Anthony Golez said these groups could always raise their grievances on the planned campaign tax before the court.

Golez, in a press briefing in the Palace, said the five-percent withholding tax on campaign expenses is based on a 30-year-old regulation of the Bureau of Internal Revenue (BIR).

“This is not a tax on the candidate. This is a tax on goods and services being bought during the campaign period,” he said.

“If they do not agree with the BIR, they can always seek clarification or file a case before the Supreme Court,” he added.

Golez reiterated that the taxation scheme on election expenses was not meant to harass opposition candidates in the 2010 polls. All political parties, including the administration, are required to follow the poll tax enforced by the BIR.

Golez, however, called on the BIR to hold an intensified information campaign on the taxes on election expenses “so people will not put malice.”

Deputy Presidential Spokeswoman Lorelei Fajardo also agreed that there was a need to explain the tax scheme due to its complexities.

“Once this is understood by our candidates and concerns about legalities have been answered, probably there is reason for them not to follow. After all, our candidates should set example to the public because they are presenting themselves as leaders," Fajardo said in the same news conference.

If the candidates refuse to follow the BIR rules, Golez said this could be a “point against them” in the elections. “I’m sure the people will run after them apart from the government,” he said.