Taxpayers from the North District gathered at Robinsons Galleria on January 4, as business permit processing and renewal commenced. | CDN File Photo
CEBU CITY, Philippines – The Cebu City government will not grant any waivers of surcharges to taxpayers who are late in paying their taxes.
This means if taxpayers fail to pay their taxes by the due date, they will be subject to the full penalties, without the possibility of relief.
This was the warning from Cebu City Treasurer Mare Vae “Ivy” Fernandez Reyes to urge everyone to pay their taxes on time to avoid further penalties.
“Sa atong mga taxpayers, ayaw na lang mo paghuwat nga naa pa ta’y amnesty nga moabot kay wa na gyu’y amnesty,” Reyes said during the ‘Money Talks,’ the teleradyo program of the City Treasurer’s Office (CTO).
(To out taxpayers, don’t wait for any amnesty because there won’t be any amnesty.)
The CTO revealed that real property taxes (RPT) in the city are due quarterly, with deadlines set on March 31, June 30, Sept. 30, and Dec. 31, while business taxes are also quarterly, due on Jan. 20, April 20, July 20, and Oct. 20.
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“Maski pa’g mabu-ak ang among kasing-kasing paminaw sa inyong excuses o’ ngano’ng di mo kabayad, automatic na gyud ang surcharges and penalties. Di na gyud nato na ma-waive.”
(Even if my heart gets broken listening to your excuses on why you can’t pay, there will automatically be surcharges and penalties. We really can’t waive those.)
Why no waivers this time?
According to Reyes, waiving surcharges and interest necessitates legislative intervention.
She explained that the Council is required to enact a resolution or an operating ordinance to either grant waivers or extend deadlines, as was done during the pandemic.
In 2019, the local legislature eliminated all surcharges and interest on real property taxes (RPT) and business taxes for 2019 and earlier due to the pandemic.
However, as the pandemic has ended, Reyes now encourages taxpayers to ensure timely payment of their taxes.
“Taxpayers must pay what is due to the government on or before the due date to avoid penalties,” Reyes said.
Tax penalties
She noted that the law imposes a two percent monthly penalty on both real property tax (RPT) and business tax.
A 25 percent surcharge is also applied to overdue business taxes, she added.
Reyes explained that if taxes accumulate 72 percent in penalties or remain unpaid for three consecutive years, the City Treasurer’s Office (CTO) will involve legal authorities and the Business Permit and Licensing Office to take measures that may include the closure of the business.
She further clarified that no business enterprise can renew its business permit unless it pays at least 25 percent of its outstanding tax liabilities if there are any.