Cebu City misses January collection target

Jean Marvette A. Demecillo/JMD (The Freeman) - February 8, 2016 - 9:00am

CEBU, Philippines - Despite recording a hike in the number of business establishments, Cebu City failed to achieve its P1.5 billion collection target on business permit renewals, taxes and other fees in January.

Cebu City’s collection was at P809 million or 46 percent shy of the target.

City Treasurer Diwa Cuevas said there are a lot of factors to consider in the city’s collection, although she admitted that she expected a higher amount based on the escalating trend of businesses in Cebu City.

“Bisan wala makaabot og target, atong i-consider nga daghan ang establishments ang nag-open karon pero maybe they opted for a quarterly payment (on their taxes),” she said.

A quarterly tax payment scheme allows business owners to pay their dues to the city in January, April, July, and October for each corresponding three months of operation. Not all businesses are required to pay their taxes in January, although all are obliged to renew their permits.

Cuevas, however, said she has not collated the exact number of business establishments that have opted to pay quarterly.

As of January 28, at least 27,597 business establishments have renewed their business permits with the city, allowing it to rake in P773.9 million.

In the same month last year, the city collected P652.3 million from 25,004 business establishments.

For this year, Cuevas cited the opening of two big malls in the city, SM Seaside City and Robinsons Galleria, as a highlight of the increased movement of local business, but she supposed these two are still finding momentum given their less than three months of operation.

In January, the city has also collected over P31 million from issuing community tax certificates or cedula, and over P3.5 million from other fees.

Cuevas clarified that the city government continues to accept payment and application for renewal of business permits even if it is already way beyond the January 27 deadline.

Business owners will have to pay the mandated penalties, though.

Those who fail to renew their permits within the scheduled period are required to pay two percent interest per month and 25 percent surcharge and late securing fees.  (FREEMAN)

 

Philstar
  • Latest
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

FORGOT PASSWORD?
SIGN IN
or sign in with