Lower taxes eyed in QC

Two Quezon City councilors proposed yesterday a tax reduction scheme for businesses in the city next year.

Councilors Bernadette Herrera-Dy and Resty Malangen filed the proposed ordinance, which is expected to help businessmen in the city cope with the economic difficulties.

Once approved, the scheme will revise Ordinance 1080-S-2001 and cut as much as 25 percent taxes levied annually on businesses in QC.

Dy and Malangen explained the proposal would give business owners a chance to recover and continue doing trade in the city.

"We saw the need to fight for it (tax reduction). Business is bad nowadays because of the economic crisis. And even with the previous tax relief we offered, we feel that it is not enough," Dy said.

Malangen said the tax cut will not only help the businesses but it will also make the city government more business-friendly.

Under the proposed tax reduction scheme, manufacturers, assemblers, repackers and processors will be allowed to pay only the computed amount of tax plus 42.18 percent of one percent of their gross sales.

"This is compared to the present computed amount plus 56.25 percent of one percent of their gross. The business owners will enjoy a little over 10 percent reduction," Dy added.

Taxes paid by wholesalers, distributors or dealers of any articles of commerce will be reduced by 25 percent.

The City Council is set to conduct public hearings on the proposed ordinance. — Pia Lee-Brago