Monday, June 23, 2008 City to hike amelioration taxes, collect more from customers of bars, motels By Linette C. Ramos Sun.Star Staff Reporter
SO the City can have more funds for projects for women and children, a Cebu City councilor is proposing to increase amelioration tax by as much as 900 percent.
Instead of just P1 collected for every customer of motels, bars, clubs, massage parlors, and gambling establishments, Councilor Jose Daluz III wants to increase the amount to P10.
He said amelioration tax is one source of revenue that has not been maximized that could help fund programs and services of the City Government.
In a proposed measure that seeks to amend the Cebu City Omnibus Tax Code, Daluz suggests that the amelioration tax trust fund be used specifically for programs and projects for women and children.
City Treasurer’s Office (CTO) records showed that the City collected only P1.63 million in amelioration taxes last year.
In 2006, it collected P1.12 million and P1.03 million in 2005.
“If we collected P1.63 million last year, we can increase that to P16.3 million if we pass this ordinance. That would go a long way in funding some services, like those for women and children. Dili na ta magsalig sa (We no longer would rely on the) General Fund because we would have separate funds for it,” Daluz told Sun.Star Cebu.
He believes that patrons of establishments would not be hurt by the increased tax, especially since revenue would be used for government services.
“These patrons go to these establishments precisely because they have the extra money to enjoy its services and products. I don’t think sakit para nila muhatag ug (it is such a pain to give) extra P10 when they can afford a P600 massage or several bottles of beer. Anyway, the amount will be used for services needed by the disadvantaged sector,” the councilor said.
Admission
Another amendatory ordinance, which seeks to scrap the 30 percent amusement tax and the social amelioration tax, is still pending at the City Council.
Proposed by Councilor Hilario Davide III, it is up for the third and final reading.
The Cebu City Omnibus Tax Code states that for amelioration tax, “there is hereby levied and imposed an admission fee of P1 on every customer or patron of establishments enumerated to generate funds for a trust fund.”
Among those listed are all gambling establishments, night and day clubs, motels and hotels classified as drive-in hotels, massage clinics, beerhouses, cocktail lounges, bars, disco clubs, sing-along joints, cabarets and dance halls.
At present, 50 percent of the social amelioration tax collection goes to the City’s coffers, while 45 percent is distributed among the City’s 80 barangays.
The remaining five percent is for the operating expenses of the Social Amelioration Board.
Daluz said not all establishments covered by the ordinance have been paying the social amelioration tax religiously, resulting in low collections.
Without City Hall personnel inspecting and counting the exact number of patrons entering the establishments every night, the CTO resorts to getting the average number of customers per night, said Julie Cuenca, CTO inspection and examination division acting chief.
She said their personnel would count the number of patrons on Friday and Saturday nights and collect tax payments for the exact number of customers on both nights.
From Monday to Thursday, the establishments are only charged for 50 percent of the number of patrons.
Daluz has consulted the CTO for other provisions of the proposed amendatory ordinance, which he said he will file today for inclusion in the council session this Wednesday.
