City on tax ordinance plaint with DOJ: Moot and academic
BACOLOD CITY – City Legal Officer Atty. Allan Zamora filed a manifestation with motion to dismiss to the Department of Justice regarding the complaint of the SM Group of Companies to stall the implementation of City Ordinance 474 series of 2008 or the Revised Revenue Code of Bacolod City.
Zamora said the record will show that after City Mayor Evelio Leonardia was informed of the many issues raised by the business community, including the appellants SM, they sent the letter proposal dated February 10, 2009 to the Sangguniang Panglungsod requesting for the deferment of the ordinance's implementation.
As a result, Sangguniang Panglungsod through City Ordinance No. 481, dated February 11, 2009 directed the deferment /suspension of the implementation of the questioned tax ordinance pending review of its provision.
“By reason of the said letter proposal of the Honorable City Mayor and by reason of the positive action taken thereon by the sanggunian, the appeal of SM has been rendered moot and academic, as the possibility is not remote that all the questions raised in the appeal could eventually be cured to the satisfaction of all the parties,” Zamora said.
Recently, SM Group of Companies filed a complaint against Bacolod City officials, namely, Mayor Evelio Leonardia, Vice Mayor Jude Thaddeus Sayson and the members of the Sangguniang Panglungsod questioning the constitutionality and legality of City Ordinance 474.
The appellant is composed of Ace Hardware Philippines, Mainstream Business, Inc., Star Appliance Center, Inc., SM Prime Holdings, Inc., Surplus Marketing Corp., Supervalue Inc., and Watsons Personal Care Stores Inc.
They claimed that C.O. 474 was passed without complying with the requirement of publication, written notice, and the benefit of public hearing prior to the enactment of the ordinance.
“Under Section 191 of R.A. 7160, any adjustment in the rates of taxes should not exceed 10 percent of the rates fixed under the Code,” SM Group's appeal stated.
They also said the ordinance, which was approved by the mayor on Dec, 24, 2008, was published in a local daily on Dec. 29, 20 and 31, which had been declared as non-working holidays.
As of now, the Sanggunian especially the committee of Councilor Dindo Ramos is tasked to conduct public hearings in order to come up with a win-win solution to the issue.
Ramos said as far as the business community is concerned, they are amenable to the increase but not as exorbitant as described by the oppositors.