Archival opposes revised tax code

CEBU, Philippines — Cebu City Council Minority Floor leader, Nestor Archival Sr. is opposing the implementation of the revised Real Property Tax (RPT) Code that is now scheduled for second deliberation in the council.

Archival called a press conference yesterday, March 18, 2024, alongside former mayor Tomas Osmeña to air their opposition to the implementation of the revised RPT Code.

Their move was in response to the calls of Cebu City Mayor Michael to the City Council to approve the revised RPT Code so it can be implemented before the end of this month.

According to Archival, right after the proposal to revise the RPT was introduced, he made rounds among the barangays, different sectors, and religious leaders to assess their stance on the matter.

“And I realized 95 percent sa akong na-istorya nag ingon sila nga wala pa mi ka recover, dili pa namo kaya nga patas-an ug makabayad sa real property nga karon nga mag increase, more or less plus and minus 5,000 percent,” said Archival.

Based on the data from the City Treasurer's Office (CTO) for the last five years, Archival said that tax collections would only reach a maximum of P8.4 billion.

Recalling the recent executive session, Archival stressed his position that even if the revised RPT will be implemented, there is no assurance that the same maximum collection of P8.4 billion would still be reached since the taxpayers will be incapacitated to pay due to the sudden surge of the real property taxes.

“Kung atong patas-on pag ayo, ang possibility na mubayad siguro ang uban pero mag protesta, nya nakuyawan sad ko, kami sa minority, kay kung mao na ang mahitabo basin magpanuko atong CTO, atong budget, atong accountant ana na pundo, magkalisod na hinuon atong syudad sa Sugbo,” said Archival.

Archival said these will form part of his arguments before the City Council during the second hearing of the revised RPT Code next week.

If his arguments will not prosper and if the revised RPT Code will be implemented, Archival said his first agenda if he runs and wins for mayor in 2025 will be to suspend it.

Last month, former mayor Osmeña said he wants Archival to run for mayor with him as vice mayor in the next midterm elections. But Archival said he has yet to decide.

“I will be the mayor, and the vice mayor will be Tommy Osmeña ug ang akong mga kauban na full slate sa BOPK, ang akong himuon as first order is to suspend the implementation of the RPT,” said Archival.

Archival, however, emphasized that he has not decided yet on the idea to run for mayor for the 2025 polls.

Among the factors noted for the need to revise the RPT Code is that it has been a long time since the city has implemented new tax rates.

As much as he agreed with the move, Archival however explained that the increased tax rates must not be implemented directly.

Both Archival and Osmeña asserted that even without the revised RPT, the city will not be experiencing a budget deficit since the current tax collection is just as efficient.

According to Archival, with the current tax collection at P8.4 billion, P2 billion of which will be for Personal Services (PS), there is a remaining fund of P6 billion, which he said is enough for the city.

“Pero kung imong tan-awon ang pagpadagan sa City Hall karon, para nako daghan kaayo siya og mistakes, pero if you are going to focus on that P6 billion, I am sure we can run the city government efficiently,” said Archival.

He added that increasing tax rates must not be done abruptly, but require more consultations in the form of public hearing.  As of this writing, Archival said there have only been two public hearings being conducted on the matter.

He also said that public hearings must also be done in the barangays.

Emphasizing more on the alleged inefficient handling of funds, Archival cited a comparison between the administration of Osmeña on garbage management.

According to him, during the time of Osmeña, the biggest allocation for garbage was just at P3 million while the Rama administration would range from P500 to P600 million.

“Now we have been asking the DPS (Department of Public Services) to reduce the amount of garbage going to the landfill…until now, after a year wala gyud nila gihimong report, meaning to say wala gyud nan ila gihimo aron mudako atong bayranan aa landfill tipping fee,” said Archival.

Archival further cited more government resources being “wasted” corresponding to the unjustified implementation of the RPT Code.

Meanwhile, Osmeña for his part has spoken from his experience as mayor from 1988, saying that he never experienced a budget deficit.

“This is pure and simple mismanagement, no control, no forecasting…no prioritization,” he said, describing the Rama administration.

He further said that the “inefficiency” of Rama and his “company” is hurting the people.

According to the former mayor, it is questionable that the city does not have any “money” given its economic growth.

“You know what I see? Corruption. Inefficient collection means corruption,” said Osmeña, adding that the lack of funds to justify the implementation of the revised RPT is just a reflection of the “mismanagement” of the city government. — (FREEMAN)