Again, the new Tax Code

Published by the Visayan Daily Star Publications, Inc.

NINFA R. LEONARDIA Editor-in-Chief & President

CARLA P. GOMEZ Editor GUILLERMO TEJIDA III Desk Editor PATRICK PANGILINAN Busines Editor NIDA A. BUENAFE Sports Editor RENE GENOVE Bureau Chief, Dumaguete MAJA P. DELY Advertising Coordinator

CARLOS ANTONIO L. LEONARDIA Administrative Officer

It is a good development where the business community and the city officials of Bacolod are sitting down to discuss the bone of contention between them that is the Revised Revenue Code of 2011.

Last year, the Bacolod Sangguniang Panlungsod passed the measure that would update the tax code of the city that had remained at the same level for the past 18 years. The disparity between the income and expenses of the city against the amount of taxes it continues to collect have become so incongruous that finally, its officials, prodded by the Department of Interior and Local Government, through a Memorandum Circular that has enjoined all local governments to update their Revenue Codes to make them more realistic, had passed the new tax code.

Local businessmen, however, have claimed that the new rates will cause them what they call “irreversible and irreparable” damage, and may result in reduction of employees and, possibly, closure of some establishments. Its initial reaction, therefore, was to file a petition before the Department of Justice asking for the declaration of the new Tax Code as “illegal and unconstitutional.”

The Justice Department, however, declined to act on their petition, pointing out that a similar complaint had been filed by another party before the Regional Trial Court, and it does not want to preempt the RTC by acting on issues that are already before it.

Aware that the case in the RTC could take a long time to be resolved, while their tax liabilities are ticking away, the business group met with the city officials yesterday and, so far, it looks as if a solution to the problem could be found at both their levels, that might be acceptable to all concerned, and, best of all, could be arrived at in the soonest possible time.

Let us hope, therefore, that an agreement is soon reached between the parties, as this is an issue that involves developments that could be beneficial, not only to them, but to the entire citizenry of Bacolod City as well.*