Rama shuts down tax credit proposal

CEBU, Philippines - Cebu City Mayor Michael Rama has dismissed proposals to grant tax credits to investors at the South Road Properties, saying it may be subject to corruption.

"I've never been favorable to tax credit. They (businessmen/investors) should pay their taxes under their corporate social responsibility and granting of tax credit is very much interpreted into giving," Rama said.

Rama said that businessmen have to pay their responsibilities to the city government.

"Tax is the lifeblood of the government," he stressed.

The City Council, during an executive session, last week requested the SM Prime Holdings Inc. and Filinvest Land Inc. (FLI) to develop the areas around their properties and get possible tax credit.

The request was made by way of a motion from majority leader Margarita Osmeña when SM Supermalls Visayas Region Operations Manager Sherry Tuvilla and the BRT technical group were invited by the council.

Rama said tax should be shared and benefited by all, including those in the poverty line, and not just by businessmen.

"It is difficult to think about it (tax credit) because if one is given supremacy it would become infirmity and threat toward a constitutional crisis in violation of equal protection clause and this would bring us to the Ombudsman," he said.

"Basi tanan mangayo na noon. If we end up giving to one, what about others asking for tax credit? What will happen to the poor?" Rama added.  (FREEMAN)

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