Rama wants Investment Incentive Code analyzed

CEBU, Philippines - Cebu City Mayor Michael Rama is glad that the City Council approved the ordinance enacting the city’s Investment Incentive Code but he will have the measure studied carefully before approving it.

“I could not approve it without scrutinizing,” Rama said yesterday.

 “I want to have a meeting with them (investment and economic experts) so that they will be able to dichotomize and try to check if there’s an additional thing needed, either whatever so that I can either approve it, partially disapprove it or totally veto it” he said.

Last August 20, the council approved the “Ordinance enacting the Cebu City investment incentive code, and appropriation of funds thereof” authored by Councilor Alvin Arcilla.

The ordinance aims to “create investor confidence and institutionalize the city government’s willingness to embrace the idea of helping businesses flourish in the city, not only for the taxes they pay but for the overall economic growth of the city.”

Under the ordinance, one of the incentives for registered enterprises that has a capital investment in aggregate amount of not less than P5 million is that it is exempted from paying business tax, except garbage fees and other regulatory fees such as but not limited to Office of the Building Official fees, City Health inspection fees, zoning fees and fire and safety inspection fees.

At present, a business tax equivalent to one-twentieth of one percent of the capital investment, as set under Section 61 of City Tax ordinance LXIX, is imposed upon registration by a business establishment.

However, Rama said he does not want to dictate the kind of businesses that will be exempted from taxes.

“I don’t want to dictate because more heads are better than mine and I don’t want to influence them at this time…maybe my suggestion is not just as loaded and substantial. It might only repress them and limit their creativity and intellect, he said.

Section 5 of the ordinance tackles the creation of a Cebu City Investment Incentive Board whose members shall formulate and define strategies and plans to pursue the policies stipulated in the measure.

The mayor will be the chairperson of the board and the head of the City Council committee on trade, commerce and entrepreneurship as vice chairperson.

The members will be comprised of the council’s committee on budget and finance head, city planning and development officer, city treasurer, the Department of Trade and Industry provincial director, DTI-Cebu, Cebu Chamber of Commerce and Industry president, and two private sector representatives to be appointed by the mayor.  (FREEMAN)