Fight to tax schools, hospitals continues

CEBU, Philippines - In his first day of work since returning from the United States, Cebu City Mayor Tomas Osmeña yesterday said City Hall has not turned a blind eye on schools and hospitals that are not paying taxes to the city.

The issue has temporarily gone cold after Osmeña left for the US last year for treatment of his cancer but in yesterday’s press conference, Osmeña made it clear that the issue is alive and the city remains firm on its decision to run after the schools and hospitals for as long as it takes.

“We are serving thousands of their students, most of them are not even from Cebu City, yet they claim to be tax free since they are charitable institutions. Well, you and I know that these are all bullshit,” Osmeña said.

He cited the case of Nursing student Ruby Jade Ruba who was shot at a dimly-lit street near her boarding house one year ago.

Osmeña contended the taxes from schools and hospitals could greatly help improve the city’s peace and order situation.

“The sidewalk vendors pay their taxes but the hospitals are not paying. There was one policeman who was shot and died during the operation and I had to raise P300,000 charged by the surgeons… mayta og nabuhi,” Osmeña said.

A case that is pending in court on the matter is stalling the city’s implementation of the tax ordinance, which enables it to collect business taxes from seven schools and hospitals here.

The schools and hospitals have sought refuge with the court to grant them exemption from coverage of the city’s tax ordinance.

“I want to stay on top of this but I have a deficiency, I am not a lawyer. But when it comes to buying and paying, I know what is right and what is fair,” Osmeña said.

The tax that the schools are not paying the city reportedly amounts to up to P5 million every year.

Also yesterday, Osmeña announced that the city will be hiring additional personnel to strengthen its implementation of tax ordinances.

“They are very short handed. There are a lot of businesses that need to be investigated. You know they are not paying enough taxes…we should enforce them,” Osmeña said.

In a separate development, the city will award its top taxpayers at the Marco Polo Plaza this Sunday.

Based on the list submitted by City Treasurer’s Office, the awardees include 21 top real property taxpayers; seven top PEZA-registered enterprises, and 20 top business taxpayers.

The top five real property taxpayers include SM Mega Holdings, Ayala Land Inc., Waterfront Philippines, Cebu Holdings Inc., and Cebu Country Club Inc.

Leading the top 20 business taxpayers are the Visayan Electric Company, Cebu Private Power Corporation, Vicsal Developers Corporation, Waterfront Cebu Hotel and Casino, and Prulife Insurance Corporation of UK. — Ferliza C. Contratista/JMO (THE FREEMAN)