The Department of Justice has given the Bacolod City officials 10 days to file their answer on the appeal filed by the Metro Bacolod Chamber of Commerce and Industry and the Bacolod Filipino-Chinese Chamber of Commerce and Industry questioning the constitutionality or legality of the Bacolod City Ordinance 565, or the Revised Revenue Code of Bacolod City.

Permits and Licensing head Vicente Petierre said they received the order on Tuesday.

The appeal was filed by Frank Carbon and Ben Ortega, representing the MBCCI and BFCCCI, respectively, against Mayor Evelio Leonardia, Vice Mayor Jude Thaddeus Sayson, Sangguniang Panlungsod members and City Treasurer Annabelle Badajos in January 2012.

In their 22-page appeal, the businessmen represented by Rahnel Perez, asked the Justice Secretary to declare C.O. 565 as unconstitutional and/or illegal for having been passed without complying with the mandatory requirements set forth by the Local Government Code and its Implementing Rules and Regulations.

They said C.O. 565 amended and increased the rates of business taxes previously imposed under Ordinance 93-001, beyond the allowable tax rate adjustment ceiling as provided for by law.

“This second upward adjustment, after the first upward adjustment made in 1993, grossly exceeds the 10 percent maximum increase under the provisions of Section 191 of the LGC,” they added.

The businessmen said the resulting percentage of increase brought about by C.O. 565 is clearly unjust, excessive, oppressive and confiscatory, compared to the old rates.

They said C.O. was passed without complying with the mandatory requirements under the LGC such as pre-public hearing publication or posting, written notice, and public hearing, failing to comply with the posting requirements for ordinances with penal sanctions, and for violating the ceiling rate of increase.

Meanwhile, Sayson, who was tasked by Leonardia to dialog with the businessmen regarding Revenue Code, has already held several meetings with them.

Leonardia, earlier, said the SP went through the procedures and consulted the City Legal Office before the new Tax Code was finally approved.

“What is significant now is that the city and the different business groups have started to sit down and explore what the possibilities are under the circumstance,” he said. They have agreed that, regardless of the result of the cases they have filed, the dialog will continue, he added.*CGS

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