Biz groups ask for gradual hike

ILOILO CITY, Philippines  - Several business groups, led by the Iloilo Business Club, have appealed to the city government for a gradual imposition of the increase in real property tax rates, based on a proposed ordinance now pending at the City Council.

Citing the dire impact of paying high taxes, businessmen here warned that the tax ordinance will not only affect them but also their clients and consumers to whom they will pass on the burden.

The concerns of the businessmen were aired during a public hearing conducted at the congressional office of Iloilo Lone District Rep. Jerry Treñas.

The hearing was supposedly not to be held after the City Council earlier said it was no longer needed because the tax measure must be approved to fully implement the 2006 schedule of real property tax values.

A day before the Council was set to deliberate and approve it on final reading, however, the Bureau of Local Government Finance-6 director Melba Sullivan issued a recommendation for the conduct of a public hearing to let the concerned parties be heard.

The business sector, in its position paper, asked the city government for the following: Collect 75 percent in 2012; 90 percent in 2013, and the full implementation of the schedule of market values only in 2014.

Joe Agriam, of the Filipino-Chinese Chamber of Commerce of Iloilo, argued that if the city wants to attract more investors, it should make the business environment conducive for investment by considering the plight of the businesses.

Fred Tayo, a representative from the enterprises sector, said they are the ones who would be most affected because they sustain the city's economy. "Most of our members, small and micro enterprises, are just renting the buildings they occupy. Our rent has been increasing by at least five percent every year and, with the proposed tax increase, we expect our rent to go up by 100 folds," he said.

Councilor Perla Zulueta, proponent of the ordinance, however countered that the city is bent on implementing the 100 percent tax on real properties.

Zulueta, chairperson of the committee on ways and means, said the city is presently collecting only 60 percent of the amount it is supposed to get from real property owners based on the 2006 schedule of market values.

 Mayor Jed Patrick Mabilog, for his part, said the city's budget next year will be slashed from P1.4 billion to P1.2 billion due to the reduction in the internal revenue allotment due to the creation of 16 new cities. (FREEMAN)