CEBU, Philippines - Cebu City Mayor Tomas Osmeña said the city should study thoroughly the offer of Viscal Development Corporation – the owner of Metro Gaisano – that it will donate 70 units of laptop computers to the city worth P1.4 million in exchange for the reduction of its real property taxes.
Metro Gaisano assistant vice president Luz A. Bitang had wrote the city government that since the computers are worth P1,428,000, they are requesting that the amount be deducted from their tax liability.
Bitang had attached a proposed draft agreement so that it can be studied by the City Council. The draft agreement was referred to the committee on laws for further review.
Osmeña, who referred the matter to the council, said he is not against the proposal if the amount is fair.
“We will assess first the fair market value of the property and if we found out that it is advantageous to the city, we will accept it,” he said.
A laptop computer can be bought at P20,000 to P80,000, depending on the brand and its specifications.
The 70 laptop computers to be donated by Viscal to the city are worth P1,428,000, meaning each unit costs P20,400.
But City Hall officials said if the amount of each laptop computer is only P20,000, it might be disadvantageous to the city although they agreed that there should be proper assessment of the product.
It was not known how much the real property tax obligations of Metro Gaisano, which operates a six-story department store along Colon Street, to the city government. — Rene U. Borromeo/LPM (FREEMAN NEWS)