Cebu suspends investment code
The Province of Cebu suspended the 2014 Investment and Incentives Code, which created the Cebu Province Investment and Incentives Board and the Cebu Province Investment and Incentives Center, through a provincial board ordinance passed during its regular session last week.
Sixth District Provincial Board Member Glenn Soco, who sponsored the ordinance, hinted that there were millions of pesos that may have been lost income for the province during the implementation of the code, thus Cebu Governor Gwendolyn Garcia considered to suspend and review it.
Certain large-scale amusement and entertainment centers located in the town of Minglanilla were identified as tax delinquents or allegedly abused the tax incentive scheme imposed by the code.
“The provisions of Ordinance No. 2014-08, or the The 2014 Province of Cebu Investment and Incentives Code, are no longer attuned to the present business climate and economic environment of the Province of Cebu,” Soco said.
He insisted that “it is urgent and pressing that the present investment and incentives code be revisited, intensely reviewed and if need be, revised and amended to suit the changing times of business and commerce.”
The Code became an ordinance during the time of then Governor and incumbent Vice Governor Hilario Davide III.
Sources from the Provincial Treasurer’s Office disclosed that Davide granted exemptions on fees on transfer of taxes, real property taxes, franchise tax, amusement tax and tax on printing and publication, which only applies to those granted a certificate of entitlement.
The Daily Tribune tried getting the side of Davide but has not replied as of press time.
Soco believes that these large-scale businesses, who were granted tax exemptions or incentives, are bounded to pay amusement and real property taxes.