Castillo: Grant of tax amnesty to improve Cebu City’s collection efficiency
Cebu City Treasurer Jerone Castillo | Delta Dyrecka Letigio
CEBU CITY, Philippines — Cebu City Treasurer Jerone Castillo is pushing for the passage of an ordinance that proposes the grant of amnesty to business owners with unpaid taxes incurred in the previous years.
The grant of an amnesty, he said, will encourage investors to already settle their tax dues with City Hall and operate a legitimate business.
“If the businesses are given amnesty, they will no longer have a reason not to pay their taxes. We want them to have a clean record for 2020,” said Castillo.
Councilor Raymond Garcia has introduced to the City Council a draft ordinance that will grant amnesty to business with pending tax delinquencies.
If approved, these businesses will only be asked to only settle their unpaid basic tax dues.
Garcia’s proposed measure is now pending review by members of the Cebu City Council.
Castillo said that businesses are made to pay penalty amounting to as much as 72 percent of their basic tax dues and another 25 percent in interest for every year of delinquency.
He said that the imposition of penalties is especially hurting small businesses that operate using a minimal capital.
The imposition of huge penalties also discourage businesses from already paying their dues with City Hall. This gives the City Treasurer’s Office (CTO) problems in their collection.
The city government collects business, real property and other taxes from investors who operate their business here.
Castillo is asking businesses to wait for the passage of Garcia’s ordinance within the year before they should settle their tax delinquencies with City Hall.
He said that the grant of an amnesty is in line with the election promise of Mayor Edgardo Labella to provide a business-friendly atmosphere in Cebu City. / dcb
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of Cebudailynews. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
