The mayor and certain fundamental principles

Many of the things we do in our lives simply follow natural processes. We may not be really conscious of it but the law of nature rules over our actions because deviations therefrom eventually bring discomfort or even untold miseries on us. When, for instance, we speak of the horrible calamities that have hit us in recent times, science experts and government authorities blame our unspeakable acts damaging mother earth as the main cause.

Government actions are not entirely different. There are fundamental precepts (and these are written in scattered statutes) that need to be strictly obeyed and conscientiously followed. Officers tasked with the administration of government cannot and should not disobey these principles principally because they are prescribed for common weal.

It is good to know that the present administration of His Honor, Cebu City Mayor Michael L. Rama, in contrast to that of his predecessor, is faithful in complying with two related fundamental principles in local taxation - firstly, that taxes shall be levied and collected only for public purpose and secondly that collection of taxes shall not be let to any private person.

The first principle. Not very long ago, a huge business conglomerate proposed to do infrastructure project by concreting the road network around its emerging business complex at the South Road Properties. At a glance, the proposal appeared persuasive. The undertaking needed heavy funding requirement that the city had difficulty meeting considering that, as reported, Cebu City was experiencing cash flow problem.

In my memory, I do recall that this same business empire made similar proposals to the mayor then sitting before the time of Mayor Rama.  This company offered to repair the streets around its mall by pouring heavy amount of Triple A grade concrete. The catch was that whatever expense it incurred for that seeming public works project should be credited as its business taxes.

Yes, I also remember having offered my observation, in this column, that the proposal was not founded on solid ground as, in fact, it was illegal considering that it breached the fundamental rules I mentioned above. Still, the former mayor, for all reasons he had, accepted the proposal such that the huge sum of money used by the business entity in concreting the roads abutting its structure was credited as payment of its taxes.

All of us know that the taxing power must be exercised only for public purpose. The money that can be realized from taxation measures can only be expended for public purposes and not for the advantage of private individuals. This is so, according to Cebuano Sofronio Ursal, an acknowledged authority on local taxation, "notwithstanding that the promotion of private interest might incidentally serve the public."

So, when the firm used its money to repair the roads within their vicinity, which money should have been paid to the city as taxes, it was not different from spending funds for the private interest of the said taxpayer. Worse, by such a methodology used, it was like allowing a private firm to dictate where its taxes be applied.

The second principle. Our laws provide that collection of taxes shall be let to any private person. There is the expectation that government machinery is structured to meet all demands of administration. It must have enough personnel to deliver its basic services. It should therefore not allow any private person, natural or juridical, to do such sensitive work as collecting taxes.

Unfortunately, the former city administration agreed with the firm to use in repairing the roads near its enterprise the money that would otherwise have been its taxes to the city. In effect, the city allowed the company to collect the taxes and having done so, appropriated the same for infrastructure project. I did not hear of any reason offered for such action so, in my private chamber, I am free to speculate.

The present administration, thank God, is not of the same mental mold as that of its predecessor. Our mayor disapproved the proposal of the firm to do concreting work around its business interests where such expense be treated as tax credit. And so we pat his back! It takes guts to say no to a giant and I believe that in such a situation, the mayor is only guided by what is fundamentally right.

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