City "junks" Punta's taxing ordinance

CEBU, Philippines - The Cebu City Council did not approve the proposed barangay tax ordinance of Punta Princesa for being ultra vires, or beyond the scope of the taxing powers of the barangay.

Under the prescribing and fixing rates of taxes, barangay and business clearances of the proposed ordinance, a regulatory fee of P5 per day will be imposed on all tricycles and habal-habal operating in the barangay and P10 on all multicabs using the barangay roads and the PUJs plying route Naga, Minglanilla, Pardo, Basak-Punta Princesa and vice versa.

Also, an annual tax not exceeding one percent on the gross sales and receipts of retailers with fixed business establishments having gross sales or receipts from P50, 000 to P500,000 in the preceding calendar year, but not to be less than P500 will also be implemented.

The ordinance will also collect annual tax of one-tenth of one percent on stores or retailers with fixed business establishments having gross sales or receipts exceeding P500,000 in the preceding calendar year.

The barangay also proposed to impose a fixed annual tax of P50 on other income generating activities.

A copy of the proposed measure was submitted to the City Council for review and approval.

But in a committee report rendered by City Councilor Edgardo Labella, chairman of the committee on laws, ordinances and good governance, he said the barangay’s proposed taxing ordinance is already beyond what is allowed by the law for a barangay in a city.

“What the law does not include, it excludes,” the councilor said.

Under Section 152 of the Local Government Code, the barangays can impose tax only on establishments with gross sales or receipts of the preceding calendar year of P50,000 or less.Labella said the fixed annual tax of P50 on other income-generating activities is not within the scope of the taxing powers of the barangay, and the P5 regulatory fee per day on trisikads, tricycles and habal-habal is also beyond its taxing powers.

The collection of regulatory fee of P10 per day on all multicabs using barangay roads and plying its route is prohibited under the Common Limitations on Taxing Powers of Local Government Units.

“With the reasons cited, this committee recommends the disapproval of the barangay ordinance,” Labella’s committee report reads.(FREEMAN NEWS)