Over 4T businesses in Cebu City face closure: Law targets firms

CEBU, Philippines — At least 4,115 business establishments in Cebu City are in danger of getting closed for violating the city’s tax ordinance.

Records of the Task Force on Inspection and Investigation of Business Permits show that 1,185 businesses are not paying taxes while 2,930 businesses failed to secure permits.

TFIIBP head Melvin Bacalso said these establishments are restaurants, hotels, apartments, condominiums, salons, catering services, spa, canteens, gas stations, bakeries, and internet cafes.

Others are warehouses, private residential lots, traders, water refilling stations, and convenience stores.

Most of these businesses are situated in Barangays Kamagayan, Kalubihan, Sambag 1, and Sambag 2.

“Halos-halos sa urban barangays, amo na-inspect. Tapos nisulod nasad mi sa mga dagko nga malls,” Bacalso said.

TFIIBP was created purposely to help the City Treasurer’s Office in the city’s crackdown on businesses that violate the tax ordinance and other existing laws.

Section 5 of the Revised Omnibus Tax Ordinance provides that all applications for business permits shall be filed before January 20 every year. It also mandates establishments to pay their taxes.

The city will give the businesses a chance to explain why they should not be shut down. If they fail to explain, the city legal office will issue a closure order that will be implemented by the Prevention, Restoration, Order, Beautification, and Enhancement (PROBE) team.

“Og dili sila morespond sa show cause, ipa-close gyud ang ilahang business establishments,” Bacalso said.

Still, Bacalso said they will not be able to inspect all 50,000 establishments before the year ends due to lack of manpower.

“Ang akong staff kay 18 ra kabuok unya pwerteng daghanang establishments diri sa city,” he said.

Since August 2, TFIIBP has inspected 12,545 businesses.

In August 2017, Mayor Tomas Osmeña ordered the closure of two branches of the famous lechon restaurant, Rico's Lechon in Barangay Panagdait and in Escario St. for violating the tax ordinance.

The other establishments that were closed were the Abuhan restaurant on Ramos St. and Vic Enterprises situated at F. Gochan St., Barangay Mabolo.

Because of the city’s intensified campaign against tax evaders, former city treasurer Veronica Morelos was recognized by Bureau of Local Government and Finance of the Department of Finance for collecting taxes beyond target in 2017.

This year, from January to October, CTO collected P2 billion business taxes compared, higher than last year’s collection of P1.8 billion.

TFIIBP term of service will end this month and the decision to extend lies with the mayor.

“Naghuwat mi sa instruction sa mayor if ipadayon ba namo ang operation or not,” Bacalso said. (FREEMAN)