Chong Hua to City Hall: Pay P14 million hospital bills

CEBU, Philippines – While it has tightened the belt on schools and hospitals on payment of taxes, the city government is now facing a dilemma of its own.

The Asociacion Benevola de Cebu, the foundation that runs the Chong Hua Hospital, has demanded that the city pay its obligations to the hospital amounting to P14,447,210.45.

The amount represents hospitalization and medical assistance charged to the city government from 2007 to 2008.

"Nabaslan pud ta kay human ta maningil sa ilang buhis, naningil pud sila sa atoang utang," City Treasurer Ofelia Oliva told reporters yesterday.

Oliva already asked the City Council to disburse the funds to pay the hospital.

The City Treasurer's Office earlier withheld the 2010 business permit of the hospital for its failure to pay business taxes since 2000. CTO records show that the Asociacion Benevola de Cebu Inc. owes the city at least P127.4 million of unpaid taxes from 2000 to 2009.

Despite this, the city continued to approve the hospital's business permits until this year when CTO insisted it is about time Chong Hua pays its dues.

The hospital was not among the seven schools and hospitals that questioned the amendments to the city's tax ordinance. The amendments have allowed the city to impose taxes on propriety schools and hospitals. 

Oliva said the Chong Hua Hospital already paid P14.4 million in business taxes only from 2007 and 2008. (FREEMAN)