Bottling company asks Mandaue to waive tax penalties

The management of Coca-Cola FEMSA Philippines Inc., the largest franchise bottler of Coca-Cola trademark beverages, is asking the Mandaue City Government to waive tax delinquency fees imposed on them by the city for the delayed payment of their business permit.

In a letter dated May 11, the company’s Finance and Administration Senior Executive Roy Hizon asked Mandaue City to waive the penalty imposed to them amounting to P90,096.69 for the delayed payment of their business permit for the 2nd Quarter of 2017.

"May we respectfully seek for your reconsideration that the penalty imposed amounting to P90,096.69 be waived. The deadline of payment was supposed to be on April 20 but the company was able to settle the payment last May 5, 2017 in the amount of P296,322.30," Hizon said in the letter.

According to Hizon, the reason for the delayed payment was that their main office in Cebu located in Consolacion was affected by a flash flood last April 16, 2017. He said that all their records and files together with computer equipment were destroyed.

Hizon said that their company, being one of the highest tax payers of the city government, has been diligently paying taxes and has been compliant with all government requirements/permits.

If the city government will grant their request, Hizon said CocaCola FEMSA will be paying in advance their local business taxes for the remaining quarters of 2017.

Mayor Gabriel Luigi Quisumbing already referred the matter to the Mandaue City Council.

Under the Local Government Code of 1991, only the Sangguniang Panlungsod has the power to grant tax exemption, tax incentive or tax relief through an approved ordinance.

During the last council session, the city council deferred the letter of Hizon for comments and recommendations.