Sunday, February 24, 2008 Lapu-Lapu now wants MEZ locators to settle all legal fees before works start
EVEN as the validity of its revised tax code still hangs in court, the Lapu-Lapu City Government is tightening its grip on Mactan Economic Zone (MEZ) locators by requiring them to settle legal fees with City Hall before construction work can begin.
Mayor Arturo Radaza signed the City Council-adopted amendment on the code’s administrative provision yesterday and tasked the City Attorney’s Office to coordinate with MEZ officials on its strict implementation.
Aside from obtaining a mayor’s permit, the private contractors should also show proof of payment of business taxes and other fees to the City.
“Through this provision, we are hoping to increase our income and protect the interest of the city,” Radaza said.
The order came days before an anticipated court showdown between City and Philippine Economic Zone Authority (Peza) officials, over Peza’s petition for declaratory relief against the City’s revised Omnibus Tax Code.
This after Peza failed to convince the Pasay City Regional Trial Court to issue a temporary restraining order (TRO) against the implementation of the revised tax code or Ordinance 70-2007.
The measure requires all Peza locators to obtain a mayor’s permit and other fees for their operation, while its workers are to pay the professional or callers’ fee of P300 and P100, respectively.
The burden of collecting the fees and remitting them to City Hall falls on the employers.
In denying Peza’s motion, the court said the agency failed to establish that the revised tax code would cause “great and irreparable damage” if implemented.
In its Dec. 26 petition, Peza argued that the ordinance, if implemented, could cause them huge economic losses, a scenario that the court refused to accept as payments made are refundable if events after the hearing favor Peza.
City Attorney Vincent Joseph Lim and his assistant, lawyer Michael Dignos, will represent the City in the hearing. (AIV)
