Bacolod Mayor Evelio Leonardia yesterday said he is positive that both the city and the businessmen will reach a consensus involving the new rates in the 2011 New Revenue Code of Bacolod City.

“So far, we feel that we are on the right track in terms of finding a win-win solution,” he said, during a meeting with the officials of the Metro Bacolod Chamber of Commerce and Industry and the Bacolod-Filipino Chamber of Commerce and Industry at the government center yesterday.

Leonardia said there were new ideas raised during the meeting that they are entertaining. “I am happy that they have a very open mind and their premise is that this is all about public-private partnership,” he said.

MBCCI president Frank Carbon said they are asking the city to reduce its taxes a little since the increase is so high, compared to other cities like Iloilo.

The increase ranges from 100 percent to 700 percent, he said and they are trying to reduce it to a certain level that will be acceptable to both parties.

Leonardia said “I think they also understand our position. We are also trying to see to it that we can meet somewhere where everybody, somehow, will accept and be happy about it.”

One of their proposals is to amend the Tax Ordinance that was already passed, he said.

“But our premise is that, aside from the Tax Code being already 18 to 19 years old, the creation of 16 new cities has affected us by as much as P45 million,” Leonardia said.

He emphasized their prognosis that while more cities continue to be created, he has not even seen a proposal or appeal to Congress that will somehow change the structure when the share of the provinces, cities, municipalities and barangays will be the same, he said. So, as the years go by, the share of the existing cities will continue to reduce, he added.

Leonardia said “If the sharing of income is not resolved, there will be an imbalance in our system. It is a fact that 50 to 60 percent of our population are in the cities, and therefore, these are the areas where services are needed.”

He said the city cannot establish any rate it wants. There are certain local government rules and Department of Finance regulations they have to consider.

Councilor Dindo Ramos said this issue is no longer legal because it was already resolved by the Department of Justice, but this is more of a concern of the city for the plight of businessmen.

Ramos said one of the issues they have to resolve is the retroactivity or the prospectivity of the application of the amendment of the New Revenue Code.

“For me, I prefer prospective application since there will be no rebates,” he said.

Ramos said the proposal to amend the New Revenue Code is no longer legal or political because they cannot appease those who have been disgruntled against the city for passing the Tax Ordinance, by just amending the law.

This is more of their concern for the plight of the businessmen because they are mandated to listen to them, he said.

Ramos said the businessmen are asking the city to lower the tax rate to 40 percent from the old Tax Code, while the counterproposal of the city is 50 percent.

He said the businessmen will discuss their counterproposal and they will have another meeting with them.

Vice Mayor Jude Thaddeus Sayson said their meeting with the businessmen has been ongoing since March. There were different concerns raised during the meetings from the sectors of the manufacturers, wholesalers, retailers, hospitals and hotels, he said.

They still have to harmonize the different concerns against the need of the city, Sayson added.*CGS

back to top