THERE will be no tax breaks for delinquent property taxpayers in Cebu City after a proposal to condone the interest of unpaid realty taxes failed to pass in the Cebu City Council.
At least eight councilors voted ‘no’ to a reprieve.
Only three including Councilor Noel Wenceslao, sponsor of the proposal, said ‘yes’.
“I’m a little bit frustrated because this is not for myself. This is for taxpayers,” Wenceslao said.
“It’s not unfair because we are giving incentives to prompt taxpayers by giving them 10 percent discount every year, but for delinquent taxpayers, we haven’t given them discounts.
This is only the first time that we thought of giving tax relief as part of the benefits for taxpayers,” Wenceslao told reporters after the session.
Under Wenceslao’s proposal, the city government would fully waive the interest of unpaid Real Property Taxes (RPTs) of those who haven’t paid their taxes within the last five years or from 2009 to 2014.
For the interest of unpaid RPT beyond the last five years or from 1980 to 2008, the city will waive only half of their expected interest.
Based on the Summary of RPT Collectibles as of May 2015 from the City Treasurer’s Office (CTO), there is a tax due of P1.17 billion on RPTs from 1980 to 2008, of which the interest is P697 million.
If the ordinance was passed, Wenceslao said at least half of the P697 million could have been received by the city within six months from the effectivity of the ordinance.
“That’s an average of P11,000 per taxpayer (out of 69,000 delinquents),” he said.
But Councilor Mary Ann delos Santos disagreed.
“Condonation won’t promote tax payment. It’s unfair to prompt taxpayers. When tax due (is not paid), it deprives the government of needed revenue for basic services to the public. It’s not the city that should compromise. We’re not at the losing end so the compromise shouldn’t come from us,” Delos Santos said.
Councilor Gerardo Carillo, who voted for the proposal, said the proposed ordinance was a way to help most people who are suffering from “difficulties” by condoning their tax interest payments.
He said the city already earned from the sale of the two lots in the South Road Properties.
The only other councilor who voted for the proposal was James Anthony Cuenco.
Those who voted against the passage of the proposed ordinance were Councilors Andales, Eugenio Gabuya Jr., Mary Ann De Los Santos, Alvin Arcilla, Margarita Osmeña, Nida Cabrera, Lea Japson and Alvin Dizon.