CEBU, Philippines – The Cebu North Bus Terminal located at North Reclamation Area in Barangay Subangdaku, Mandaue City is already exempted from any tax due to the Mandaue City government.
The announcement that the terminal is now free from any tax liability to Mandaue became final after officials of the Cebu Provincial Bus Operators Multi-Purpose Cooperative were able to show "proof of exemption," a certification that they are a member of the Cooperative Development Authority.
The cooperative was also able to show that their income was below P10 million.
However, although the terminal is now free from any tax liability from Mandaue City, the same does not apply with the operations of the Cebu City Abattoir whose facility is also situated at the NRA.
According to Mandaue City Treasurer Regal Oliva, officials of the Cebu City government, namely City Administrator Lucelle Mercado, City Legal Officer Jerone Castillo and City Treasurer Diva Cuevas came to his office last October 29 to present a tax declaration of the slaughterhouse.
Oliva said he did not declare that the Cebu City is cleared from any tax liability after he found that it was being stipulated in the said tax declaration that only the lot is exempted from taxes.
The building is taxable, Oliva pointed out.
With what he has discovered, Oliva said he has given Cebu City 10 days to submit the abattoir's charter, its organizational chart and its financial statements in the last five years.
From there, it will be determined whether Cebu City is indeed exempted or not from any tax liability.
He said that if the financial statements will show proof that the slaughterhouse has no income at all and is subsidized by Cebu City, then it is really meant for "public service."
But if the financial statements will show proof that it is operating with income, then Oliva said it is already a taxable "enterprise."
Further, during their meeting, Cebu City officials failed to present any memorandum of agreement with regard to the use of the Mandaue City lot for the operation of the Cebu City slaughterhouse.
Oliva said he understands that it may take a while for the Cebu City government to comply with the requirements for their "tax exemption," nonetheless, he has given it until the end of the year to meet the requirements.
"As much as possible, we will be lenient, but that leniency will not extend until the end of the year," Oliva said.
He also told Cebu City officials that they should also comply with the payment of the annual regulatory fees set by the Mandaue City government, which include mayor's permit, sanitary permit and fire permit, among others.