Telecom companies now have to pay local tax

Finally the Supreme Court denied the motion for reconsideration by Smart Communications, Inc. to pay local franchise tax to the City of Cebu. This calls for congratulations to Cebu City Mayor Tomas Osmeña who for so long have insisted that Telecommunications companies ought to pay a local franchise tax.

It is a fact that it was through the efforts of Mayor Osmeña that the members of the Mayor’s League have also filed similar cases all over the country and all eyes are on Cebu City especially now that the Supreme Court has ruled that Telecommunications has to pay local franchise taxes. Incidentally, Davao City already won a similar case a year ago. This means, that not only Smart Communications, Inc. has to pay the franchise taxes, but also Globe Telecom, Sun Cellular and future telecommunications companies and intends to operate in Cebu City and this also goes for the other Metro Cebu Cities as well!

Now the bone of contention is whether the City of Cebu should accept the recommendation of Acting City Treasurer Ofelia Oliva to collect more than the P7 million that Smart Communications, Inc. already paid to the City of Cebu for the year 2009 to 2011 or collect now the actual payment as mandated by law.

There is no question that Smart Communications, Inc. was smart enough to offer a compromise offer. I would like to believe that this should be respected by the City of Cebu. I agree with the City Treasurer that this amount is very little, but then, that’s the problem with getting a compromise deal as the money was given before the SC ruling on this case. Now Cebu City can collect from other telecom companies.

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I was quite amused by the report that Tropical Storm “Pepeng” that ravaged most of Northern Luzon was able to do something that the Armed Forces of the Philippines (AFP) was not able to do in the mountains of the Cordilleras — flush out the New People’s Army (NPA) from their hidden lairs in the jungle in order to avail themselves of the relief goods that were being distributed by the government and the non-government organizations.

With many of the food stocks destroyed by the storm, add the fact that Defense Secretary Gilbert “Gibo” Teodoro Jr. issued an announcement suspending offensive military operations against the NPA rebels in the typhoon-ravage areas, these rebels have now taken full advantage of this moment of peace so they too can survive the ravages of the typhoon.

Perhaps now would be a good time to identify these rebels and woo them to lay down their arms and stop fighting in a struggle that has only made them outcasts of society. If indeed the Communists really fight for the interest of the Filipino people, now is the time to show that they care. But it seems that the noisy friends of the Communists, many of whom are Party-List members of Congress have been very quiet since the nation has devastated Luzon. Are they scared to use their pork barrel to help the people?

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UN Undersecretary General John Holmes for Humanitarian Affairs have asked for a “Flash Appeal” for more funds to aid our typhoon-ravaged nation because it has fallen short of the US$55 million needed for our recovery and relief efforts. Mind you, the money collected so far is US$19 million. This is not even for the rehabilitation of our typhoon devastated homes or agricultural crops, which has now been estimated at P18 billion.

Meanwhile, Malacañang created a special National Reconstruction Commission composed of private and government groups headed by Manuel Pangilinan of Metro Pacific, co-chaired by Finance Secretary Margarito Teves and our very own Cebu Archbishop Ricardo Cardinal Vidal. This group is tasked to seek more aid to fund the reconstruction and rehabilitation of typhoon-damaged areas.

No question, whatever monies that would be collected by this group, the money would definitely benefit the typhoon victims. However, this early, Sen. Enrile already warned this group that all foreign monies will have to pass the scrutiny of the Senate. Clearly, this country needs a huge amount not just for relief efforts but also for the massive infrastructure projects that have to be funded to prevent future flooding from happening again. But this is a very long-term project and would entail a huge infrastructure funds, which will certainly cause more imbalance in the development of our country as most of these funds will be spent in Luzon.

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Email: vsbobita@mozcom.com

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