City losing billions in tax revenues
The Cebu City government is reportedly losing billions of revenues from over 10,000 business establishments that are not regularly paying taxes.
Mayor Tomas Osmeña said the public should be aware that these business firms had been violating the omnibus tax ordinance of the city.
“I am going to tell the Cebuanos. I am going to make a stand,” Osmeña said.
Osmeña said he is creating a task force to run after these tax evaders. The mayor vowed to close all business establishments that are found violating the city's tax ordinance.
The team will be headed by Prevention, Restoration, Order, Beautification, Enhancement (PROBE) chief Raquel Arce. Osmeña said he is now finalizing the list of tax evaders and will start closing down these establishments soon.
“I'm not interested in the issuance of business permits as long as they pay their taxes. Just pay your taxes and we will not run after you,” he said.
Osmeña explained that securing business permit is a long process because the establishments have to secure clearances from other departments such as the Bureau of Fire, City Health Department, Government Service Insurance System, among others.
He said firms should secure certificate from treasurer's office that they are paying their taxes regularly.
“Business permits are a pain in the neck. You have to get fire department clearance, city health, GSIS, SSS (Social Security System). I don't care about that. I just care about paying taxes,” Osmeña added.
Osmeña said those establishments that will be closed for reason of not paying taxes will not be allowed to reopen until after two years.
In April 2017, the city government started going after alleged tax evaders. Two branches of the famous Rico's Lechon restaurant in Barangay Panagdait and along Escario Street were shut down. The city also closed its central commissary along Highway 77 in Barangay Talamban.
Other establishments earlier closed by the city government include Time Out Sports Bar on F. Ramos Street in Barangay Cogon, Jeshian Café in Barangay Kamagayan, Ed's Tambayan in Sitio Nasipit, Barangay Talamban, Chuva-Chuva Spa, Abuhan restaurant, and Vic Enterprises.