CEBU, Philippines - The Cebu City Council is inviting officials of the Bureau of Customs and the Land Bank of the Philippines to shed light on whether or not it is advantageous for the city government to ask for tax exemptions on behalf of the suppliers every time it purchase heavy equipment from abroad.
The Council also wants the presence of representatives of the City Hall’s Bids and Awards Committee and Bureau of Import Services.
For several occasions, Councilor Eduardo “Edu” Rama sponsored a resolution asking the council’s authority to allow Mayor Michael Rama to sign documents to import equipment for the Department of Public Services (DPS) and also to apply for tax exemption from the Bureau of Import Services.
The executive department usually asked the City Council’s authority for the mayor to open Letters of Credit with the Land Bank of the Philippines.
Councilor Rama initially explained to his fellow councilors that this type of transaction is beneficial to the city because if the suppliers are left alone to do the importation, incidental expenses will still be added on the price of the equipment to be purchased.
“Kun ang Cebu City government ang mo-apply makadaginot ta og kwarta kay i-deduct man sa supplier ang amount nga magasto unta nila kon sila ang molukat sa import permits ( If the Cebu City government will apply the import permit it can save money because the supplier will deduct the importation cost) ,” the councilor said.
However, majority of the members of the council agreed to be briefed about it by people who are knowledgeable about it. The Council has scheduled the appearance of the customs and bank officials on July 4. (FREEMAN)