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Cebu News

Council budget committee opposes abolition of Social Amelioration Tax

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Saying that the amelioration tax compensates the effects its sources give to the community, the City Council’s committee on budget and finance had disagreed with the move to abolish the city’s Social Amelioration Tax.

The committee, headed by councilor Joey Daluz, said that while it agrees with the contention of councilor Hilario Davide III that the social amelioration tax of the city’s Omnibus Tax Ordinance is not clearly defined and its implementation is not effectively carried out, abolishing it is not the answer to the concern.

“While we agree with the proponent of the proposed ordinance that the social amelioration tax of the Revised Omnibus Tax Ordinance of the City of Cebu is not clearly defined and explained and its implementation is not effectively carried out, the committee believes that abolition of this tax ordinance is not the answer,” the committee said.

“Rather, we need to revisit said tax ordinance, strengthen its provisions and ensure its equitable enforcement. It is further suggested that we identify the specific purpose for which the fund shall be devoted to and how this will be disbursed,” the committee added.

The committee explained that the purpose of the social amelioration tax is to generate funds, kept in a trust fund, that would contribute to the alleviation, improvement and amelioration of a deteriorating social condition brought about by social ills associated with certain vices and personal flaws and foibles.

These include, but not limited to, vices and activities that promote and encourage gambling, alcoholism, drug use, prostitution, immoral acts and other acts that may lead to the weakening of the moral fiber of society and the disintegration of the family.

This is also the reason why the social amelioration tax is levied specifically on establishments such as gambling establishments, night and day clubs, motels or drive-in hotels, massage clinics, and steam baths and sauna baths.

The committee further said that while the Philippine Amusement and Gaming Corporation is the biggest contributor to the city’s social amelioration projects, Pagcor is not the sole entity responsible for the proliferation of vices and other unhealthy habits. — Joeberth M. Ocao/MEEV

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AMELIORATION

CITY

CITY COUNCIL

COMMITTEE

HILARIO DAVIDE

JOEBERTH M

SOCIAL

TAX

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