Rama wants tax increase ASAP

Cebu City Mayor Michael Rama is determined to implement the increase in real property taxes before the end of March.

Rama has called on the members of the City Council to already pass the revised Real Property Tax (RPT) code.

According to Rama, he has been "very patient" in waiting for its implementation adding that its discussion has long been on the table. He clarified that in the revised RPT there are no changes in the assessment value and tax rate but rather just the Fair Market Value (FMV) where the new tax code is based.

"Implementing rules and regulation shall be immediately crafted after the passage of the general revision to balance the interest of the government," said Rama.

Rama, however, said that the imposition of the new tax rates shall be on a staggered basis.

According to Rama, it is high time that the revised RPT must be implemented considering that its last revision happened more than 10 years ago.

"Tungod naa sa kahadlok sa usa ka gobyerno nga mapildi, walay sala ang mga dato, way sala ang mga taxpayers, ang dakong sala ang kahadlok sa mga elected officials apil ko, apil si Tomas Osmena, apil ang mga nangaging mayor," said Rama.

The mayor said he is ready to take the fall of whatever the effect of the implementation of the new RPT code. The revision is expected to result in an increase of the real property tax rate as much as 1,000 percent.

Rama, however, said that property owners who may not be able to pay on time are entitled to negotiations that seem fit to their capability.

"Mao rana akong ikasulti ninyo, aprobahan ninyo ang revision, lingkod dayon ta, implementing rules buhaton nato in three month’s time," said Rama.

In an interview with The Freeman, Councilor Noel Wenceslao, chairman of the committee of budget and finance of the City Council who also authored the revision, said they will include in the agenda next week the second reading of the proposed revised tax code.

Wenceslao said that as the author, he is ready for the final deliberation but clarified that his wisdom may be different from the majority of the council.

“Hopefully na mahuman na this March kay ang problem raba inig human next week, wala natay session, Holy Week na, so tan-awon nato how far we can go,” said Wenceslao.

He added that they had already agreed on the staggered implementation while other property owners were given a 50% discount to minimize the impact of the soaring tax rates.

Wenceslao said that they will have to deliberate these discounts with the executive department.