CEBU, Philippines - Lexmark Research and Development Corporation insists that a petition for declaratory relief is the proper remedy to address the question on whether the Cebu City Government should collect taxes from the company.
Lexmark, being registered with the Philippine Economic Zone Authority (PEZA), has claimed that it exempted from paying real property tax. But the City Government said a petition for declaratory relief is not the proper remedy to question the city ordinance imposing real property taxes.
The Lexmark, in its reply sent to the court, stated that it is “elementary” that a petition for declaratory relief would be the proper remedy to question the validity of the local ordinance and to declare this null and void.
Lexmark said under PEZA law, they were granted with certain fiscal incentives.
“Among the incentives, Lexmark is exempted from all local taxes including real property tax. This concession granted under the PEZA Law partakes of a vested right which cannot be unilaterally withdrawn,” the reply further reads.
With that foregoing argument, Lexmark asked the court to issue a writ of preliminary injunction against the City Government to stop them from imposing, assessing and collecting real property tax from them in connection with its building in IT Park.
Moreover, Lexmark asked the court to nullify the City Ordinance No. 2016 or the local tax ordinance that requires PEZA-registered companies to pay real property taxes despite Republic Act 7916.
Lexmark named Mayor Michael Rama, the City Council and the city treasurer as respondents in the petition.
Lexmark paid under protest the amount of P4.9 million real property tax for the years 2009 to 2011 to avoid possible closure. — (FREEMAN)