Give new local tax code a chance, say

FINANCE committee chair Councilor Danny Dayanghirang appeals to the business sector to give the revised revenue tax code a chance to be implemented before further adjustments would be made.

In an earlier interview, Dayanghirang said the committee would want to see first the impact of the 2017 Amended Revenue Code before recommending further amendments.

“If we adjust it immediately, the estimates and the appropriate will be affected. Because all of our expenses next year will be collected today, we should have an estimate collection this year for next year, it will be affected if we re-do it,” said Dayanghirang in an earlier interview.

During the Kapehan sa Dabaw press conference Monday, May 28, Dayanghirang said they are asking for the understanding of the business sector since it is also almost 12 years since there was an increase in taxes. He said there is an allowable 10 to 15 percent increase of taxes which may be imple- mented within June or July this year. Dayanghirang said the appeals that they receive for adjustment go as low as only 5 percent increase.

“We will see first and check if the adjustment is necessary. So the question is, will there be adjustments? Very soon there will be because Davao City is a friendly city to business sectors and we are understand the predicament in doing business here but on the other hand, the business sector should also understand that the demand of services is high,” he said citing the need for additional facilities to cater to the needs of the 1.5 million people currently living in Davao City. He said there would be a need for additional street lighting, dump trucks to collect garbage, and scholarship program budget among many others.

He said, within the years that the revenue tax was not amended, some of the business establishments in the city were offered with tax incentives for two years of the Davao City Investment and Promotions Center (DCIPC) depending on the type of the business they decided to venture in.

The Davao City Chamber of Commerce and Industry, Inc. (DCCCII) had earlier sent a copy of business tax rate comparison which states that Davao’s City local business tax is much higher than that of the other cities in the country. The compared cities include Makati City, Taguig City, Iloilo City, Bacolod City, General Santos City, and Cagayan de Oro City.

“Referring to the data we have gathered, it is observable that Davao City has tax rates slightly higher than those of the other cities mentioned, though many cities are still using old rates way back three years or more,” said DCCCII president Arturo Milan through the letter by the chamber.

As a response to this, Dayanghirang said he will work with the executive department for the necessary ordinance amendments.