Real property tax: Proposed increase slammed by Archival

Former Cebu City mayor Tomas Osmeña (left) and Councilor Nestor Archival Sr. talk with the media on Monday, March 18 in Cebu City. CDN Digital photo/Niña Mae Oliverio

CEBU CITY, Philippines — As the second hearing for the amendment of the Real Property Tax (RPT) Code draws near, Cebu City Councilor Nestor Archival Sr. reiterates his stand against its implementation. 

Yesterday, March 18, Archival called for a press conference together with former Cebu City Mayor, Tomas Osmeña, to express their opposition against the implementation of the revised RPT.

To recall, Cebu City Mayor Michael Rama wanted the adjustments of the RPT calculations to be completed by this month, March. 

Archival, who is also the council’s Minority Floor leader, said that after the resolution on the revised RPT was presented to the council, he checked and asked various sectors in the barangays from drivers and religious leaders for their opinions on amending the RPT code. 

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“And I realized 95 percent sa akong naistorya nagingon sila nga wala pa mi karecover, dili pa namo kaya nga patas-an ug makabayad sa real property nga karon nga magincrease, more or less plus and minus 5,000 percent,” said Archival.

(And I realized that 95 percent of those whom I have spoken said that they still had not recovered, we cannot still afford an increase and pay the real property that now will increase by more or less plus and minus 5,000 percent.)

Moreover, the second point that Archival raised was the total amount of tax that the City Treasurer’s Office (CTO) had collected. He said that it would only reach about a maximum P8.4 billion. 

When he asked the department heads during the executive session, especially the CTO, Archival recalled that if they would be increased in the tax, there would be a possibility that the P8.4 billion collection would not be reached. 

“Because taas kaayo and the second thing is, tan-aw nako, tan-aw sad sa akong mga kauban sa minority [nga] kung atong patas-on pagayo, the possibility nga mubayad siguro ang uban pero magprotesta, unya nakuyawan sad ko, kami sa minority, kay kung mao na ang mahitabo basin magpanuko atong city treasurer, atong budget, atong accountant paggamit ana na pundo, magkalisod na hinuon atong syudad sa Sugbo,” said Archival. 

(Because that is very high and the second thing is, the way I look at it, and the way others in the minority [that] if we increase it higher, the possibility is some would pay but under this would be under protest, and I worry also, here in the minority, that if there will be something that will happen, the city treasurer will not be inclined to get from our budget, also our accountant, in using the funds and the city will then be in a difficult situation.

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Suspending the Real Property Tax increase

Archival said that he will be presenting his arguments, together with his colleagues from the minority, during the council’s second deliberation next week.

However, in case the majority of the council would support the amendments of the RPT code, his first “order” would be suspending the implementation of the increase of the RPT if he would win in the mayoral bid in the 2025 midterm elections. 

Archival said yesterday that at present, he had not yet fully decided on running as mayor, but if he would decide to run, suspending the increase of the RPT would be his first agenda. 

He said that if he would be the mayor, then Osmeña would be his vice mayor, their first order is to “suspend the implementation of RPT” together with the full Bando Osmeña Pundok Kauswagan (BOPK) slate.

Furthermore, among the factors that were considered in increasing the RPT in the city was that it had been long since the local government implemented new tax rates. 

Archival acknowledged this, but he said it was “not the reason” to increase the RPT in such rate, immediately. 

Moreover, he said that of the P8.4 billion tax collection, P2 billion of which is allocated for the “salaries” which would leave the remaining fund to P6 billion.

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“Pero kung imong tan-awon ang pagpadagan sa city hall karon para nako daghan kaayo siya og wastage, so if you are going to focus on that P6 billion, I am sure we can run the city government efficiently…Kani man gyung pagsaka sa taxes nato dili man ni pwede nga ingon ana kadali,” Archival said. 

(But if you look at it, the way city hall is now run for me there are a lot of wastage, so if you are going to focus on that P6 billion, I am sure we can run the city government efficiently…this increase in our taxes, it is not that easily done.)

He added that so far, two public hearings were conducted regarding the RPT code. 

He also said that there should be a public hearing in the barangays so that the people would know about it. 

Archival also pointed out that if the city’s budget was handled efficiently, there would be no need to increase the RPT. 

Wastage

Recalling Osmeña’s administration on managing the garbage, Archival said that the biggest allocation that time for the garbage was P300 million, while Rama’s administration had allocated P500 million to P600 million “just for garbage alone.”

“Now we have been asking the DPS (Department of Public Services) to reduce the amount of garbage going to the landfill, nihangyo ko bisag 2 tons a day lang, until now, for about a year wala gyud nila gihimong report, meaning to say wala nila gihimo of course mudako atong bayranan sa landfill tipping fee,” Archival said. 

(Now, we have been asking the DPS (Department of Public Services) to reduce the amount of garbage going to the landfill, we requested that even if it is just 2 tons a day, until now, for about a year, there is no report made about it, meaning to say there is nothing done about it, of course, the payment for the  landfill tipping fee will increase.)

Archival also said that there had already been “wastage” of city’s funds, some of which were used in some miscellaneous things. 

He said that if the existing funds would be managed properly, revising the RPT would not be necessary. 

Rama’s inefficiency, corruption

Meanwhile, Osmeña, for his part, said that during his term as mayor, especially in 1988, his administration never experienced a deficit in budget. 

“As a matter of fact, this is pure and simple mismanagement, no control, no forecasting…no prioritization,” Osmeña said.  

He also said that the “inefficiency” of Rama and “his company was hurting the people.” 

“You know what I see? Corruption. Inefficient collection means corruption. You raise taxes this will allow the administration to twist the hand of the taxpayers,” Osmeña said. 

Furthermore, the former Cebu City mayor added that current administration’s inability to justify the implementation of the revised RPT was a reflection of the city’s “mismanagement.”