Extension of business tax payment deadline sought

CEBU, Philippines – Cebu City Treasurer Diwa Cuevas has requested the council to extend until January 27, 2016 the period taxpayers can pay their business taxes without paying surcharges and interests.

Section 167 of the Local Government Code provides that all local taxes, fees and charges shall be paid within the first 20 days of January, but it was also provided that for a justifiable reason or cause, extend the time for payment of such taxes and surcharges.

Although the council has yet to approve the request, Cuevas strongly believed that the city legislators will support her recommendation.

“Daghan man gud nga holidays mao nga unya pa kita makasugod og pangolekta’g buhis sa January 4 na. Kun kutob ra ta sa January 20, apiki na ug daghang dili makabayad,” she said.

Under the law, those who fail to pay their business taxes on time will be imposed a 25-percent surcharge to be computed out of the taxable value, aside from the two percent interest per month until such amount is fully paid.

The city will be renting SM City Trade Hall where personnel of the City Treasurer’s Office will temporarily hold office for them to collect business taxes.

Republic Act 7160 or the Local Government Code empowers the local government units, such as the cities and municipalities, to levy the properties of the concerned delinquent taxpayers.

The procedure is that upon failure of the person owing any local tax, fee, or charge to pay the same at the time required, the treasurer, upon written notice, seize or confiscate any personal property belonging to that person or any personal property subject to the lien in sufficient quantity to satisfy the unpaid taxes.

Cuevas said the City Treasurer’s Office expects to collect P1.5 billion this year solely from business taxes, saying “Karong tuiga miabot man og kapin sa P1 billion ang atong nakolekta mao nga nagtuo mi nga mosaka g’yud ang amount sa collections kay nagkadaghan na man ang mga business establishments karon.”

She added that several taxpayers welcomed the city’s move to set up a “one stop shop” at SM City Trade Hall where they can pay their taxes more conveniently than at the City Hall. — (FREEMAN)