Thursday, July 17, 2008 Lapu to question CA order on fees
LAPU-LAPU City will question the basis of the Court of Appeals in restraining the effectivity of its revised tax ordinance and the imposed bond amount against the Philippine Export Zone Authority (Peza), saying the appelate court failed to consider existing precedence.
Assistant City Attorney Michael Dignos said the legal office will file a motion for reconsideration, describing the decision adverse to the city’s economic growth.
“We will file an MR because the court failed to appreciate the magnitude of the situation,” he said, adding that with the decision the City stands to lose P50 million to P100 million collectible fees from locators of the Mactan Economic Zone.
The court gave credence to Peza’s insistence that by its Charter its locators are not obliged to pay taxes to its host local government unit and that its power include issuance of building permit.
But Dignos said the measure sought fees, not taxes from securing a mayor’s permit and building permit.
“Manila City and practically all LGUs hosting export zones are imposing these fees and this is where the court had missed to consider,” he said.
The TRO will lapse in 60 days, but if Peza fails to post the bond it will automatically become ineffective.
Mayor Arturo Radaza, for his part, is saddened by the decision, saying it is a setback on his effort to shape Lapu-Lapu into a better city. (AIV)
