City collects P1B
The Cebu City Treasurer’s Office has collected P1 billion from businesses that processed their mayor’s permit recently.
City Treasurer Veronica Morelos said the P1,000,634,310 they collected in just 20 days is 8.25 percent higher compared to last year’s P922,382,628.
“We have concluded the one-stop shop last Friday. After this, we will conduct a massive inspection next month,” Morelos told The FREEMAN.
Morelos said the increase in collection can be attributed to the current administration's fight against tax evaders.
As of 6 p.m. last Friday, at least 30,779 business establishments processed their business permits, eight percent higher compared to last year's 28,496 establishments.
Of this number, at least 29,720 renewed their business permits; 592 acquired new permits; 21 added businesses; while 446 retired their businesses.
Of this number, too, only 29,200 paid their taxes.
In January 2016, only 27,608 establishments paid taxes upon processing their permits. The following year, 28,577 establishments paid taxes.
Next month, the city will undertake a massive inspection of establishments in the city that have not secured permits.
Two factors that
contributed to the increase in collection, Morelos said, are the payment of delinquencies and higher gross receipts of businesses.
For 20 days, the city collected P198, 997,704 from tax delinquency compromise agreements with businesses.
Morelos said businesses that failed to meet the deadline can still process their permits but will have to pay a two percent interest per month and a surcharge of 25 percent.
Morelos said earlier the city would observe due process in recommending closure of businesses that are found operating without permits.
Claire Cabalda, head of the Cebu City Business Permit and Licensing Office, said the office has issued 1,000 final permits out of the 29,200 establishments that have paid.
The office has yet to ensure that all requirements before issuing a final permit to operate but other establishments were given temporary permit to operate their businesses, she said.
Last year, Osmeña started closing establishments that are allegedly operating without permits. These include 12 warehouses and one main office/store of Vic Enterprises; Abuhan's branch along Ramos Street; two branches of the famous Rico's Lechon, as well as its central commissary; Time Out Sports Bar; Jeshian Café; Ed's Tambayan; and Chuva-Chuva.
Cabalda said these establishments were subjected to assessment on payable taxes last year based on gross sales.
“For the renewal of their permits, they are subject to the approval of the mayor if he will lift the closure order issued last year,” she said.