City Council exempting PNP tax payment “improper”

CEBU, Philippines - The Cebu City Council last week said it cannot approve the request not to demand any transfer tax payment on the donation of a lot to the Philippine National Police for the construction of a police station because the city has, in the first place, no powers to impose such.

In a committee on laws report that the body approved, the council said the donation is beyond the authority of the city to impose any transfer tax on so it is “improper” for the body to grant an exemption.

“This committee is of the opinion that the donation of the above-described lot by Barangay Inayawan to the Philippine National Police is outside the scope of the taxing powers of this city, hence no transfer taxes shall be imposed on the said transaction,” the committee said.

“It therefore becomes improper for the Sanggunian to grant an exemption (as the proposed resolution aims to do so) over transaction which is no power to tax in the first place),” added the committee, whose report the City Council approved last week.

Councilor David Tumulak, committee on public order and safety chairman, had sponsored a resolution requesting the City Council’s approval to allow the PNP not to pay any transfer tax.

It was referred to the committee on laws headed by City Councilor Raymond Alvin Garcia.

The PNP is constructing a new office for the Pardo police station, as the space it is currently occupying inside the Pardo Public Market is not big enough.

Inayawan, headed by Barangay Captain Lutherlee Ignacio-Soon, donated the lot for the new station.

Instead of requesting an exemption, Garcia said, Tumulak should draft a resolution stipulating that the City Council acknowledges that the donation is outside the power of the city to tax, hence it cannot be imposed with any transfer tax payment. (FREEMAN)