Mall terminal operator contests amendment to tax ordinance

CEBU, Philippines - A terminal operator is opposing a proposed amendment to the city tax ordinance, which imposes a fixed annual regulatory fee of P550,000 to any group or individual who operates terminals for public utility vehicles.

Cecilia R. Patricio, vice president for corporate tax division of SM Prime Holdings who operates a terminal for PUJs beside the SM City Mall at the North Reclamation Area, said the proposed amendment is “unjust and not reasonable.”

Patricio said she understands the purpose of the city officials to collect more revenue, but the amount of the regulatory fees “should be reasonable and not excessively high.”

“Clearly, bearing in mind that only regulatory fee is being imposed to terminal operator, the proposed imposition of annual fixed amount of P550,000 is unreasonable and imposes undue burden on the part of terminal operators,” Patricio said in a seven-page letter to the City Council.

She further explained that unlike local business taxes wherein the Local Government Code provides maximum rates, the Code does not specify rates for fees and charges, particularly for the issuance of a mayor’s permit.

Patricio explained the imposition of an annual fixed amount as regulatory fee to terminal operators in the amount of P550,000 is excessively high, particularly for the terminal at SM because the same is reportedly not intended for profit but for public service. 

Patricio said the main objective of putting up the SM City terminal is to provide the mall’s customers “utmost shopping convenience and safety.”

“We strongly believe that with the present economic situation of our country and the whole world as well, it is more appropriate to implement increase in fees and charges that are rational and fair more particularly to terminal operators whose main objective is just to provide convenience and safety to transport riding public,” she said. — Rene U. Borromeo/JMO   (THE FREEMAN)