CEBU City Councilor Eugenio Gabuya Jr. wants small and home-based businesses, including sari-sari stores, to be exempted from paying the business tax.

To fulfill this, the lawmaker from the city’s south district has proposed an ordinance which seeks to exclude from paying the business tax the owners of businesses that have a start-up capital of not more than P10,000, and have annual gross receipts of not more than P100,000.

The legislation is in line with section 192 of the Local Government Code, which states that “local government units may, through ordinances duly approved, grant tax exemptions, incentives or reliefs under such terms and conditions as they may deem necessary.”

Gabuya’s measure is titled “An Ordinance Exempting Small and Home-based Business from Payment of Business Tax in Cebu City.”

The legislation could help women, who are the ones who often put up home-based businesses to augment their husbands’ income, said Gabuya.

The legislation would also cover businesses not selling cigarettes and liquor.

However, the proposed ordinance states that owners are still required to register or renew their business permits, and pay the regulatory fees in compliance with the existing laws and ordinances.

“It is for the paramount interests of the residents of Cebu City to grant small and home-based business owners reprieve from paying business tax,” a portion of the measure read.

The Business Permit and Licensing Office (BPLO) would come up with the implementing rules and regulations to carry out the provisions if the City Council approves Gabuya’s measure.

The City Council has referred the legislation to the committee on laws for review. (JJL)