Vol. XXII, No. 161 [ BusinessWorld Online ]
Wednesday, March 18, 2009 | MANILA, PHILIPPINES
BY MARITES S. VILLAMOR, Visayas Bureau Chief
CEBU CITY — The Cebu Chamber of Commerce and Industry (CCCI) has asked the Cebu provincial government to defer the implementation of the amended Revenue Code of Cebu which would increase real property taxes.
Under the code, a new schedule of fair market values for real property will take effect on March 29.
The planned adjustments will raise real property taxes by up to 50%, compared to the 2002 rates.
Edward S. Gaisano, chamber president, said in a letter to the Provincial Board last week that such an increase is not timely because of the global economic slowdown.
More incentives needed
Instead of raising taxes, Mr. Gaisano said the provincial government should provide more incentives to existing and potential investors "who can alleviate the plight of our labor force presently smarting from the loss of jobs and income."
He cited the results of the business pulse survey conducted by the Cebu Economic Advisory Group (CEAG) last month which showed that about a third of the 150 respondents were still optimistic about maintaining their level of business activities despite the crisis.
About 26% of the survey respondents even expected business to improve.
"This positive outlook, we believe, is based on the premise that the cost of doing business in Cebu will remain the same," Mr. Gaisano said.
Aside from deferring the implementation of the new revenue code, the chamber also asked that consultations and public hearings be conducted.
Mr. Gaisano’s letter was presented to the board during its regular session on Monday. The chamber’s request was referred to the board’s committee on ways and means for further study.
Under Republic Act No. 7160, or the Local Government Code of 1991, local governments may revise their schedule of fair market values every five years.
Board Member Peter John Calderon, who had authored the new city revenue code, said the adjustments have been long overdue.
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