Friday, June 01, 2007 Tax hike not automatic when Lapu-Lapu raises status
TAXES will not go up right away once Lapu-Lapu City becomes highly urbanized, as any increase will undergo the usual process and require approval, assured City Prosecutor Evangeline Gicale.
On the other hand, the city may reap possible benefits such as an increase in the City Hall workers’ salaries, and more freedom in the implementation of policies and projects, as these will no longer need the Capitol’s approval, Gicale added.
On July 21, qualified voters in Lapu-Lapu City will decide if they are for the conversion.
Gicale and City Administrator Teodulo Ybańez spoke yesterday on a City Hall-initiated forum about making Lapu-Lapu City highly urbanized. At the forum held inside the session hall were councilors, barangay officials and some residents.
Lapu-Lapu has met the three requirements—land area, income and population—to qualify as a highly urbanized city. The conversion only needs the people’s approval, Gicale said.
Lapu-Lapu City sits on a 64.2-square-kilometer area and hosts 217,019 inhabitants, based on the 2000 national census records.
Both meet the requirements for conversion, said Gicale.
As for its income, the City allocated P557.59 million as its annual budget this year. (A city must earn at least P100 million in local income, excluding its share in the Internal Revenue Allotment.)
Its declaration as a highly urbanized city could also mean more policemen and equipment for Lapu-Lapu, Ybańez said.
“What’s in it for the urban poor?” Marjorie Cuizon, assistant city social welfare officer, asked.
Gicale said the budget for basic services will increase if more revenues come in, and the City can increase its revenues if the City borrows funds or increases its taxes.
“But an increase in taxes will not come automatically once we become highly urbanized,” she assured.
Any increase needs the approval of the city council, the concurrence of the mayor and a public hearing.
As a component city, Lapu-Lapu has not undergone a general revision of tax rates since its last revision in 1994, said Assistant City Assessor Leonardo Tampus.
Many councilors viewed any increase in taxes as an unpopular move. “Anybody who proposes a new tax ordinance never gets reelected,” quipped City Attorney Joseph Lim at the forum.
As a lawyer and certified public accountant in Lapu-Lapu City, Gicale pointed out, she pays P150 yearly in professional taxes for each profession. But in Talisay or Cebu City, her tax would be pegged at P300 for each profession, she said.
Forum participants agreed that materials for information dissemination will be available in a week’s time.
Association of Barangay Councils president Eduardo Cuizon said the barangays are ready to spread the word, and only need a primer to start with. (OCP)
