|
Tuesday, September 05, 2006
Cabaero: On tax amnesty to schools, hospitals
By Nini B. Cabaero
Beyond 30
I agree that a tax amnesty is a tool by the tax collector to hasten the accumulation of revenue. And usually the amount involved is huge since an amnesty is considered at the end of a long period of inactivity, in this case, the non-payment of taxes.
The Cebu City Government is considering such a thing. It is willing to write off at least P175 million in penalties for unpaid business taxes of schools and hospitals. A proposal to this effect is pending with the City Council. One local legislator reportedly said the tax write-off would benefit the City Government.
The original amount computed by City Hall was P292.3 million in unpaid taxes by 15 establishments. The accumulated penalties were calculated at P315.8 million. But only P151 million in unpaid taxes and P174 million in penalties were computed based on a new ordinance that reduced tax rates effective year 2003. The amount of penalties and surcharges are higher than the principal amount because these are added on every year to the unpaid tax.
These establishments include three hospitals and 12 schools, colleges and universities. By condoning the penalties, the City hopes to recover the P151 million in unpaid taxes from 2000 to 2004.
While the grant of amnesty could be a strategic move by City Hall, there is no assurance that the city’s residents who were already deprived of the benefits of the revenue would gain from such a strategy.
What is not clear is if these schools and hospitals have already factored in taxes in the computation of the cost of their services to the public. If so, then the revenue due to the government had already been paid by students and patients of these establishments.
City Hall could publish the names of these establishments so the public can help government put pressure on them to remit the amounts. News reports on the amnesty proposal did not identify the schools and hospitals.
If identified, clients of these establishments could determine whether the business tax had been factored into the computation of tuition or the cost of a hospital stay or treatment.
In addition, the amount of P174 million in penalties to be condoned is a huge one that could spell more classrooms or books and cheaper hospital charges especially to the less fortunate of Cebu City. Consider if only 20 percent of the penalties would be converted into charity benefits, this could mean an entitlement that otherwise would never be enjoyed by the poor of Cebu City.
When the City Government considers this proposal for a tax amnesty, it should study not only the benefits to its coffers but also the impact of such a grant to the people who use the services of these schools and hospitals.
For Bisaya stories from Cebu. Click here. (September 5, 2006 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
