Cebu City Treasurer’s Office pushes 200% to 400% hike in garbage collection fees for businesses
The Cebu City Hall. CDN Digital photo | Brian J. Ochoa
CEBU CITY, Philippines — The Cebu City Treasurer’s Office (CTO) presented its amended proposal for garbage collection fees before the city council on Friday, Dec. 2, 2022.
This was days after it deferred its first proposal last week, as members of the city council flagged CTO’s original proposal, alleging that the proposed increase in garbage collection fees was not “proportionate” to the classifications of establishments.
During the continuation of the budget hearing on Friday, City Treasurer Mare Vae Reyes told the council that when the local tax code of the city was enacted in 2005, the city’s expenditure for garbage was only P47 million per year, and now it has reached P400 million.
The city, however, currently has an annual collection for the garbage fee of only P100 million, from businesses and residential paying real property taxes.
“Currently, the expenditures for garbage is P400 million. That’s why we proposed this increase depending on the classification and amount of garbage that each classification has generated,” she said.
She said the city is subsidizing, from its general funds, the amount of P300 million to cover its garbage expenditures.
For the CTO’s amended proposal, Reyes said the increase rates were based on the percentage increase given for each classification of business establishments.
And for the garbage collection fee increase that the CTO is proposing, the office estimates an increase in the city’s collection of P400 million to P500 million per year.
Proposed updated garbage collection fees
The CTO proposed an increase of 200 percent in the garbage collection fees for the main offices of the aircraft and watercraft companies. Once approved, these companies will be paying P16,000 from the current fee of P8,000.
“For every branch office thereof, it is the same with those (with) less than 100 square meters, because most often than not, this classification ang naa diri sa (here in) Cebu City are only branches. The main offices are usually in the NCR,” Reyes said.
The CTO also proposed an average increase of 400 percent in the garbage collection fees for bakeries and bakeshops.
For bakeries and bakeshops, the CTO proposed an increase of 400 percent, for each sub-classification that they had, which would mean that bakeries with 1,000 square meter floor area or more would be paying P16,000 from the current P4,000 in garbage collection fees once the proposal would be approved.
Once the proposal is approved, bakeries with less than 100 square meters will also be paying P7,300 from the current P1,825.
Moreover, pharmacies with an aggregate floor area of 1,000 square meters and more will be paying P8,000 from the current P4,000.
Those with less than 1,000 square meter floor area will also be paying P3,650 from the current P1,825.
RELATED STORIES
Rama assures ‘democratic process’ in revised tax code discussion
Proposed revised tax rates ‘excessive’ and ‘oppressive’ – Wenceslao
Tax revisions pushed to fund Cebu City’s P50B budget in 2023
Rama wants P50B budget in 2023 to achieve ‘Singapore-like’ dream for Cebu City
Should vloggers, even Marcos, pay tax? Yes, if there’s income – BIR
/dbs
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.
