Bacolod business group questions new tax rate
BACOLOD CITY -- City Treasurer Annabelle Badajos confirmed yesterday that she received a complaint from Ramon Kilayko, Senior Vice President of the Prudential Guarantee Corporation, regarding the substantial increase in business permit fees for the year 2009.
In his letter, Kilayko noted a substantial increase as compared to that of last year and she was told by the Assessment Officer that the Local Government Tax was increased from 40 percent to 75 percent by virtue of City Ordinance No. 474 dated December 10, 2008 which took effect January 1, 2009.
Complainant also informed City Assessment Officer Lilibeth Gamboa that he finds the ordinance unfair and inequitable for the reason that Local Government Tax is a "pass on" tax to consumers.
"Why do we have to pay a "pass on" tax that we have not yet collected?" Kilayko asked. Complainant called the imposition as unjust and inequitable and he suggested that the new rate should be implemented in 2010.
Kilayko further requested the City Treasurer's Office to review the ordinance especially its effectivity as soon as possible and to extend the period with which to pay while the issue is being deliberated.
Complainant in his letter declared that he is withholding payment of 2009 business tax pending the review of this ordinance.
On the other hand, a group of Certified Accountants lead by Christine Dongon also wrote Sangguniang Panglungsod Secretary Nilo C. Alejandrino clarifying if the public hearing in relation to the city's New Tax Rates that become effective this January had been initiated and done. The group also requested a record relative to the substantial increase of taxes. Meanwhile, City Treasurer Badajos clarified that this is not a "pass on" ordinance but what they are collecting is based on the new adjusted rate approved by the Sanguniang Panglungsod last December 10, 2008. Badajos believed that the computation was based on the gross receipts of said entity which is reasonable and just because the city imposed new tax rate after 15 years that the ordinance was amended and approved.