CEBU, Philippines — The Cebu Chamber of Commerce and Industry together with its officers and representatives from P&A Grant Thornton, Cebu Tours and Travel Association (CCTA) and Cebu Alliance Of Tour Operation Specialists, Inc. (CATOS) met with the Cebu City Treasurer OIC Ivy Reyes on Wednesday, February 10, to discuss the concerns involving the local business tax in the city.
CCCI members raised a concern on the city treasurer’s manner of computing for the local business taxes as observed from a survey conducted last 2019. The local business tax for 2020 is feared to increase by 30%.
The Chamber stated that the travel and tours operators’ tax assessment should be based on the sales of the preceding taxable year it is clear on the local government code as long as we can support the affidavit of sales or the vat return.
Cebu City Treasurer OIC Reyes said that they will not be imposing a 30% increase in the local business tax because they know that businesses in 2020 were badly hit by the ongoing pandemic.
She further stated that assessment of the assessors will always be based on the types of documents submitted such as BIR Returns, a list of the documents are also found at the back of renewal application forms. However, affidavits will not be honored because it is self-serving.
CCTA President Cookie Chan expressed the need for a business tax assessment filing extension in order to allow businesses to resolve their assessment issues.
Reyes said that they have already appealed for the extension of the deadline from February 20, 2021 to March 20, 2021 with Councilor Raymond.
In matters involving regulatory charges on business or branches that have closed, the City Treasurer’s office shared that regulatory fees are based on the first capital declaration and permit fee is based on the gross receipts for the renewal a minimum of P75.00 and maximum of P2,000.00 with non-financial institutions for financial institutions that would be P3,000.00 based on the percentage of the gross sales, along with other fees.
The meeting ended with a decision to await the approval of business tax assessment extension and the creation of a position paper for the CCTA fees.
For more information, one may call CCCI at 232-1424 or email at juffer@cebuchamber.org