More businesses have opened in Bacolod since the implementation of the Revised Revenue Code in Bacolod City, Permits and Licensing Division head Vicente Petierre III said yesterday.

Petierre, citing official records from his office, said records show that more new businesses opened in Bacolod this year compared to last year before the New Tax Code was implemented, based on the records of the Permits and Licensing Division of Bacolod.

Petierre was commenting on the claims of Vladimir Gonzalez, businessman, and a prospective candidate for city official, that the implementation of the Code lacks consultation and is sending a wrong signal to investors because businessmen always see to it that the business climate should be predictable.

He added that the high rates of taxes is not good for business and that the City Government should have repealed the New Tax Code before holding a dialog with the business sector.

Petierre said Gonzalez may have been misinformed because the New Tax Code complies with the provisions of the Local Government Code.

Councilor Al Victor Espino, author of the Revised Revenue Ordinance, said it is legal, transparent and it had undergone the correct process.

He said they will continue their negotiations with the businessmen until a common ground is reached.

Petierre said their records show that from January to June 2011, only 714new businesses opened, compared to 1,770 new businesses that have opened this year covering the same period. This was after the New Tax Code was implemented, he said.

Only 1,341new businesses opened for the whole of 2011,he added.

Petierre said this means, that, in the six-month period, more new businesses opened after the New Tax Code was implemented compared to the whole year of 2011.

MORE BUSINESS PERMITS

This also shows that more businesses opened in Bacolod City this year and this is backed by official records because these establishments had applied for, and were issued business permits, he said.

Meanwhile, Petierre said the total businesses that have closed or retired from January to June 2012 were 425, compared to 417 covering the same period last year.

He said these were not big businesses, but small ones like beauty parlors, bed spacers, common carriers with few units, carinderias, sari-sari- stores, RTW, internet and gaming, etc.

In fact, Petierre said, they encouraged these businesses to file for closure because, otherwise, their surcharges will become bigger.

He said whether or not the city increased business taxes this year had nothing to do with these businesses that have closed.

REASONS FOR CLOSURE

Petierre said they interviewed the owners of these businesses and not one of them said they closed their businesses due to the increase in business taxes.

On the other hand, most of them said their businesses did not “click,” he said, and the reason for that is more on the marketing and management side, not the Tax Revenue, he said.

Petierre saidthey acknowledge and respect the statements from certain groups in the business sector who claim that some businesses have closed and some have transferred, allegedly because of the new Revenue Code of Bacolod City.

He said his office is very willing to sit down with them if they can present figures so they can compare notes.

But, based on their official records regarding new businesses that have opened, and those that have transferred or closed, he has not seen any relation to the increase in business tax rates, , Petierre said.*CGS.

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