CH execs welcome hike in bank tax
The Cebu City Treasurer’s Office and the City Budget Office have expressed support to the passage of a proposed ordinance that seeks to increase business tax rates on banks and other financial institutions in the city.
City Treasurer Tessie Camarillo said the city will collect more revenues if the proposed measure will be approved.
“The proposed measure is a welcome development and we are favorably in support for its due enactment as the additional levy or increase tax rate would bring more revenues for the city,” read a portion of Camarillo’s November 14 letter to the City Council.
Camarillo is referring to the proposed ordinance of Councilor Raymond Alvin Garcia, who wants to amend the city’s existing Omnibus Local Tax Ordinance.
From the existing business tax rate, which is 50 percent of one percent of the gross annual receipts, Garcia wants the rate to increase to 75 percent of one percent of the gross receipts of banks and other financial firms.
Camarillo further asked the City Council to consider amending other provisions of the City Omnibus Tax Ordinance to cope with the growing needs of the city.
City Budget Officer Marietta Gumia, for her part, said she also supports Garcia’s measure, noting that it would increase the city’s income to support its programs, projects, and activities.
AGAINST
Last week, the City Council conducted a public hearing to get the side of affected stakeholders.
The Cebu Bankers Club, represented by its president Mario Fritz Palileo, was opposed to the proposed measure.
“Increase in taxation will increase total expenses for the banks. Banks expenses have increased these past few years due to capital expenditures which are aimed at increasing the safety and efficiency of the bank’s delivery of services and operations,” read a portion of the club’s position paper.
Palileo said banks cannot afford to pay hefty taxes as of now because they are improving their services due to recent cases of ATM card fraud in the country.