EDITORIAL - Not a time for tax hikes

There is now a proposal to implement sweeping tax hikes in Cebu City.

As per a story in this newspaper, among the proposed adjustments were substantial increases in annual garbage collection fees, parking, tricycle registration, health permits, and even burial permits.

As mentioned in the story, for the trash collection fees alone, garbage fees for eateries will increase from ?365 to ?3,000, with rates reaching as high as ?10,000 depending on the establishment. Market stall holders will also face higher charges, from the current ?365 to ?1,500, with proposed rates reaching ?7,500. For boarding houses and bed-space establishments, the proposed fee will jump from ?25 per room to ?500 per bed.

Meanwhile, marriage license fees will increase from ?20 to ?250, while burial permit fees will rise from ?10 to ?200.

Peddlers' fees will range from ?30 to ?2,000 depending on the nature of their activities, while ambulant and short-term vendors may be charged between ?100 and ?300 daily, while special permits costing ?500 to ?10,000 per day, depending on the event.

City Treasurer Emma Villarete said adjustments to taxes and fees have become necessary because of rising inflation, higher operating costs, and the declining purchasing power of the peso.

Some city councilors have challenged the move, saying it will burden business owners, drive up prices, and discourage investors.

We should hold off raising taxes for now. Even though Villarete says, the city’s tax code hasn’t been updated for more than 20 years.

For one, the proposed increases seem to be excessive. Especially the trash collection fees, burial fees, and peddlers’ fees.

For another, this is a bad time to hike taxes, the rising inflation, higher operating costs, and the declining purchasing power of the peso isn’t a problem exclusive to the city government. The business owners, the potential investors, even the ordinary taxpayers are also suffering from these same problems. In fact it hits them more.

And while the city government has a steady source of income and doesn’t really have to worry about where to get money, many of us have to worry about this problem every single day.