The Metro Bacolod Chamber of Commerce and Industry and the Bacolod Filipino-Chinese Chamber of Commerce and Industry filed an appeal before the Department of Justice Friday questioning the constitutionality or legality of the Bacolod City Ordinance 565, or the Revised Revenue Code of Bacolod City.

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.

Leonardia said “That is expected. In fact, we have already talked about it.” That is something they had to do to comply with thereglementary period of 30 days from the implementation of the ordinance, he said.

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 local taxes are also considered as overhead expenses of business enterprise and these overhead expenses cannot be recovered by increasing the selling price of services, commodities, goods or merchandise, as this would only result to higher tax payments as the tax base is based on “gross receipts or gross sales.”

They said that with the high payments for local taxes, various overhead expenses and other cost of doing business; business enterprises, including those of the members of the MBCCI and BFCCCI, will surely be precluded from engaging in the pursuit of business.

The unconscionable increase in tax rates under C.O. 565 is excessive, as to be prohibitive and will result to a business environment that will not be conducive to enterprises, they said.

They also 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.

Leonardia said “We respect their move. At the same time, we explained that the SP went through the procedures and consulted the City Legal Office before the new Tax Code was finally approved.”

We will wait for the decision of the DOJ and we will cross the bridge when they come to, he said.

Leonardia said what is significant now is that the city and the different business groups have started to sit down and explore what are the possibilities under the circumstance.

He said they have agreed that, regardless the result of the cases they have filed, the dialog will continue.

“This is nothing personal, and we consider this as a business decision as against the politically motivated case filed by former Bacolod Rep. Monico Puentevella,” Leonardia said.

Meanwhile, Leonardia said Puentevella is either guessing or lying when he said that Bacolod has an outstanding loan of P1.3 billion.

He said records of the city show that its outstanding loan in less than P500 million.

“We assure the people that the money was not plundered as was the accusation about the funds for the SEAGames case”, Leonardia added.*CGS

back to top