Mayor defends veto of realty tax amnesty

BAGUIO City Mayor Mauricio Domogan has defended his move to veto an ordinance that granted amnesty to delinquent real estate taxpayers.

Domogan said granting the tax amnesty is counterproductive as it adversely affects the city’s tax collection efforts and unfair to people religiously paying their tax dues.

“How can we help the city in its tax collection efforts if we keep on waiving fines and surcharges?” the mayor said noting that the city lost P38.5 million representing arrears and unpaid real property taxes when it implemented a six-month amnesty last year.

“Besides, it is as if we are encouraging people to neglect their duties because a lot of taxpayers now say that it is better not to pay real property taxes and just wait for the amnesty,” the mayor said.

Philippine Chamber of Commerce and Industry Inc. Baguio-Benguet chapter president Modesto Imayaho Sr. last year chided the city for granting the amnesty saying it is unfair to those who religiously pay their taxes on time.

City Treasurer Alex Cabarrubias also frowned upon the condonation of penalties and vowed that it would be the last time that the city will implement such a moratorium.

The mayor on September 28 vetoed Ordinance No. 114 series of 2018 granting amnesty or relief on penalties, fines, surcharges, interests or arrears to delinquent real estate taxpayers.

Instead of the moratorium, the mayor pushed for the grant of more incentives to those complying with the law.

At present, the city provides a 20-percent discount to real property taxpayers who pay their taxes in advance and also discounts for those who pay promptly, meaning within the first quarter of the current year, January – 20 percent, February – 15 percent and March – 10 percent. (PR)

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