Garcia wants to tax Airbnb, online shop apps

CEBU, Philippines — Cebu City Vice Mayor Raymond Alvin Garcia wants to explore the possibility of levying taxes on Airbnb and online shopping apps, saying it is high time for them to contribute to the city’s coffers.

While Garcia clarified that he is not against the operation of such businesses in the city, he said the same must be made to pay taxes for the city’s treasury.

During the news forum OpenLine on MyTV, Garcia said that there are hotel operators who complain for paying their taxes regularly, yet their competitors do not contribute anything to the local government's coffers.

He said that one of the best things to do now is to examine Airbnb’s operation and take necessary action from there.

Garcia said making Airbnb liable for taxes is also a way of helping the city government’s goal of achieving a high tax collection next year.

It can be recalled that Mayor Michael Rama has proposed an ambitious P50 billion budget for the city government for 2023. This is in line with the plan to make the city just like Singapore.

The council is still deliberating on the proposed budget for 2023.

Garcia said that if the city's collection increases, the hike will be used to finance projects and programs for the people.

To increase collection, the city government is mulling to increase its current tax rates.

The vice mayor clarified, though, that even without implementing the proposed tax  revision, the city government could still achieve close to the target P50 billion annual budget for next year through more efficient tax collection and mapping.

But Garcia clarified that the tax revision is still important because it is time to update the city's tax code.

The last tax revision in Cebu City was in 2003 which was implemented in 2006.

Garcia has already revealed earlier that tax collection and tax mapping are some of the methods lined up so that the city can collect more funds.

He said that there are other establishments that do not declare the real status of their business in order to avoid paying other taxes.

Other establishments declare the wrong number of floors and elevators so that they won’t pay the full tax.

Meanwhile, Garcia said he will also find a way to tax online shopping apps.

According to the vice mayor, the online shopping applications do not contribute any tax to the city government. (FREEMAN)