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Late business taxpayers to incur 25% surcharge

By: Pia Piquero - Multimedia Reporter - CDN Digital | January 03,2024 - 10:16 PM

business tax

Hundreds of applicants for business permits flock to the Cebu City Treasurer’s Office. Late applicants will be required to pay a penalty. (CDN FILE PHOTO)

CEBU CITY, Philippines – A 25 percent surcharge on the total amount due is applied as one of the penalties if business owners in Cebu City pay beyond the deadline, said City Treasurer Mare Vae Reyes.

Other penalties include a two percent interest per month, which incorporates surcharges but does not exceed 72 percent, and a late securing fee.

“Importante gyud siya kay mao man ni ang license nila to operate a business. If dili sila mamayad sa ilang taxes, pwede sila ipa close anytime,” Reyes warned.

On January 2, the Office of the City Treasurer (CTO) announced that the processing of the Mayor’s Business Permits and issuance of Special Permits would commence on January 4.

The deadline for business permit renewal applications and payments is set for January 20.

According to data recorded by the CTO, the total number of establishments in Cebu City reached approximately 40,000 in 2023, reflecting a 21 percent increase compared to 2022.

In 2023, Reyes mentioned that they have accumulated a total of over P2.7 billion in gross total collections.

“More or less 2.7 billion, gross ra na, but ang total collection gyud kay ang makahatag sa total figure ana ang accounting gyud, the total renew and new license,” she said.

Reyes noted that due to the increase in business establishments in Cebu City, she anticipates the total collection for this year to surge to P3 billion.

However, she mentioned that the P3 billion collection still falls short of the high expectations set by the city government, which aims for a total of P100 billion.

“Ang target na gisubmit sa city to the city council is 100 billion, all taxes na dapat na nga ma collect but wala paman na touch ang revision. Wala pa ang updating so dili pa namo makuha ang target,” Reyes said.

She further clarified that they are currently operating under the tax code of 2003, in which she emphasized the need to revise the tax structure to meet their targets.

“Atong certification is only P40 ra, ang uban barangays P100, P1,000 man gani nang uban certification lang. Kita tag P40 ra. Dapat na gyud ta mag increase,” she said.

“But if dili na siya ma-increase, dili na siya ma approve, mag rely nalang gyud ta sa nagkadaghan na business,” she added.

The city treasurer noted that every year after the pandemic, Cebu City has seen a higher number of new business establishments, which she considers beneficial, even without the proposed revision in the tax code.

Despite receiving requests from other businesses to extend the deadline, the city treasurer clarified that they are not considering an extension and that taxpayers are urged to fulfill their obligations before January 20.

Satellite offices of the CTO are located at SM Seaside Cebu City for South District taxpayers and Robinson’s Galleria for North District taxpayers.

They will accommodate taxpayers for both online and physical transactions.


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Cebu City collects more than P1.4 B in business taxes

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TAGS: business permit, Cebu City, Cebu City Treasurer's office, tax

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