Lapu-Lapu sanggunian to modify revenue code

CEBU, Philippines - The Lapu-Lapu City council is now working to amend the existing ordinance otherwise known as the “Revised Lapu-Lapu City Revenue Code.”

Yesterday, a public hearing was conducted by the city council to hear suggestions and recommendations from affected sectors, especially locators inside at the Mactan Export Processing Zone.

The City Council passed an ordinance in December 26, 2007, which required, among others, that Philippine Export Zone Authority registered companies must secure a Mayor’s Permit from the city government and pay the corresponding Mayor’s Permit fee.

The same ordinance also states that all workers in the PEZA Ecozones within the city are required to secure a calling fee or occupational permit fee from the city.

However, in January 16, 2008, PEZA filed an action for Declaratory Relief questioning the legality of the mentioned requirements and impositions on PEZA registered companies and workers in the PEZA Ecozones. The Special Action Civil Case was filed in the Regional Trial Court Branch 114 of Pasay City.

Both parties, PEZA and the city government of Lapu-Lapu, have come up with a compromise agreement with respect to the Mayor’s Permit, business taxes, and fees for service establishments within the PEZA Ecozones, and for the occupational or calling permit fee for the workers inside the PEZA Ecozones.

In an order dated December 17, 2012, the Court approved the compromise agreement entered into by the parties, hence, judgment was rendered in accordance therewith, which is immediately final and executory.

Members of the city council believe that there is a need to amend certain provisions of Ordinance No. 070-2007 in order to reflect what has been agreed upon by the parties.

With the amendments, the city council said there shall be collected an annual fee at the rate provided hereunder for the issuance of a Mayor’s Permit fee for every person that shall conduct a business, trade or activity within the city of Lapu-Lapu, except PEZA locator companies or companies/entities that enjoy incentives from PEZA or enjoying incentives under Republic Act No. 7916, as amended by Republic Act No. 8748, otherwise known as “The Special Economic Zone Act of 1995”.

The permit is payable for every separate or distinct business establishment or place where the business trade or activity is conducted. (FREEMAN)