4 opposition dads support Tom’s plan to ease up on biz permits

Some opposition councilors agree with the mayor’s plan not to go after establishments without business permits but pay their taxes saying this would cut bureaucratic red tape.
(CDN PHOTO/JOSE SANTINO BUNACHITA)

CEBU City Mayor Tomas Osmeña’s plan to ease up on the business permits gained support from some Barug Team Rama councilors.

For one, they said this would ease the bureaucratic red tape for business entities dealing with City Hall.

“I will support it 100 percent. It’s good for business. It will cut red tape. It means that the other requirements can just be to follow. Like you will just be stamped that you have paid taxes but you’ll have to comply with the OBO (Office of the Building Official), fire, health, and sanitary certificates,” said Councilor Raymond Garcia, a lawyer.

This was supported by Councilor Pastor Alcover Jr., who said that the mayor has a point in his plan and that red tape in government is “prone to corruption.”

Councilor Jose Daluz III, who is also a lawyer, lauded the mayor’s move saying it can be done since there are no specific provisions on business permits under the Local Government Code.

He said business permits are only required by local ordinances in the city which can be amended to accommodate the plan of the mayor.

“But we have to qualify this plan. I suggest that for new businesses, they should still have to apply for a business permit so we can properly gauge them. But for renewal, there should be no need to get a business permit anymore,” he said.

He added that the reason why there are businesses that can only secure temporary business permits from City Hall is because there are so many businesses in the city that need to be processed by the City Treasurer’s Office (CTO).

Instead, Daluz said City Hall can just monitor these existing businesses especially in terms of payment of taxes due to the city government.

But aside from easing the process of securing business permits, Daluz said the mayor’s move could be a way to appease the businessmen in the city, especially after City Hall’s recent clash with some businesses like Rico’s Lechon, SM, and Banco de Oro Unibank Inc., among others.

“The business sector is a little bit angry at him because of what he’s doing with businesses like SM and Rico’s wherein the manner it was closed was questionable. It’s like his gift or peace offering to the business sector. Whatever his motive is, it’s a good move,” he said.

But Councilor Jocelyn “Joy” Pesquera remained adamant over her disagreement with the mayor’s plan. She said securing business permits is mandated under local ordinances.

“I’m not in favor of doing away with business permits. That’s our basis to check whether all establishments have complied with our regulatory requirements,” she said.

She said this is a preventive measure put in place by the city. Taking this away would mean the city will be reactive, especially if there are problems later on relating to fire safety and sanitation, among others.

Meanwhile, Mayor Osmeña clarified that he does not want to cancel business permits as a requirement per se.

“The treasurer’s office will only run after those who don’t pay taxes and not go after those who don’t have a fire permit, a building permit or a sanitary permit,” he told reporters yesterday.

What he’s trying to do is to “streamline” the process he added.

Osmeña said he’s telling the CTO to collect taxes from all establishments or individuals that make money in the city, whether legally or illegally.

Violations on building code, fire safety, health and sanitation among others should be dealt with by other concerned offices and agencies, not the CTO.

He said it will be like an “automatic renewal” for the permits of existing businesses in the city as long as they pay taxes. The city will run after those who do not pay their dues, he said, and the city will make them pay.

If businesses lack the other requirements for a business permit, the city will give them a certain time period to comply.

As for new businesses, he said the city government will have to come up with certain “ratios” to determine how much tax should be paid depending on the nature and size of the new business.

Asked how this will be done, Osmeña only said that the city will have to do it “step by step.”

On the other hand, when asked about the fate of Rico’s Lechon whose two restaurants and commissary were closed by the city last month, the mayor said he will consider letting them operate anew if they settle their taxes.

“He (Rico’s) doesn’t pay his taxes. He said his business (generates) half a million a day. That’s P180 million a year. If he will pay that for the next five years, we will let him operate,” he said.

Rico’s Lechon’s establishments were closed by the city for allegedly operating without business permits although there were allegations from the owners that the closure could have been motivated by a personal grudge because they decided to cut ties with the mayor’s daughter-in-law, who owns shares in one of their branches.