Tuesday, October 23, 2007 CH gives IT park establishments time to pay taxes
THE Cebu City Government is losing millions because several establishments at the Asiatown IT Park think they are exempt from paying business taxes.
Mayor Tomas Osmeña, however, is willing to give them time to pay because he does not want to shut them down.
He did not specify a deadline because he said “he is not as vindictive as Lapu-Lapu City Mayor Arturo Radaza.”
Osmeña, who checked on the status of these establishments last week, said only exporters like call centers are exempted from paying business taxes. He specifically targeted establishments at the Asiatown IT Park that are not Philippine Economic Zone Authority (Peza)-registered enterprises.
Services
“Call centers are (not covered by taxes) because they are exporting their services, which are not tangible goods. They have the same impact as the export business. But if you’re selling hamburgers, that’s not export. Unless these businesses want to challenge me, they have to pay their business taxes. There are penalties, so the longer they won’t pay, the bigger their penalties will be,” he said.
Osmeña said that some of them might not have business permits, too, because “they won’t open their books to us.”
In coordination with the management of Asiatown IT Park, a letter was given to tenants, merchants, and locators, advising those without Peza accreditation or registration to comply with necessary local government unit requirements.
The letter cited Article 78 of Republic Act 7916 or Special Economic Zone Act of 1995. It states that Peza-registered enterprises, notwithstanding the provisions of law to the contrary to the extent of their operation or production inside the zone, are exempt from the payment of any and all local government imposed fees, licenses, or taxes except real estate rates.
“We would like to emphasize that this exemption is only applicable to Peza-registered enterprises specifically those with Peza certificates and registration agreement between Peza and their respective companies,” said park administrator Raul Mananquil. (NRC)
