BUSINESS leaders have welcomed the plan of Cebu City mayor-elect Edgardo Labella to extend the validity of business permits to two years but urged that they be consulted on the policies and mechanics of the proposal.
They also proposed that processing of business permits be done online.
“Online application and online payment is also desirable,” Cebu Chamber of Commerce and Industry (CCCI) president Virgilio Espeleta said on Wednesday, May 29, 2019.
Last January, the City Government launched an online payment portal for business permit fees to fast-track the processing of payments in response to complaints from taxpayers that they were having a hard time making payments at City Hall.
Espeleta, for his part, said going online will save them time and money in processing their permits. They will also be spared from lining up in long queues.
“It saves a lot of time, long queues. And by going digital, we can pay online, same as Securities and Exchange Commission, Department of Trade and Industry, Social Security System and others. The City Hall captures all business info on its database and if we are assigned business permit numbers, that’s our identity and access in transactions with City Hall,” he said.
Rey Calooy, president of the Filipino-Cebuano Business Club, said business owners would support the idea because of the accessibility it would provide them.
Consulted
But Espeleta added they will greatly appreciate it if the sector will be consulted on the manner that the permitting processes can be improved and streamlined.
“We in business would appreciate it if consulted on the manner the permitting processes can be improved and streamlined,” he said.
However, Calooy raised concerns about the plan to extend the validity of business permits to two years, asking how the City’s finances would be impacted by the move.
“It would be a big improvement for the City. But on the other side, there is also a conflict because for a year, won’t the city government’s income be affected? There’s a gap for a year. So what are the mechanics and policies?” he said.
Calooy said 80 percent of the income of the city comes from the business sector.
“What will their precautionary measures be? Will they collect it in advance?” he said.
Will still pay
Outgoing Vice Mayor Labella said businessmen will still pay their business taxes every year.
Aside from business taxes, the City Treasurer’s Office (CTO) collects real property taxes and other types of taxes every year.
The CTO assesses a business establishment after its permit’s expiration to determine if it has to pay higher taxes based on its income every year.
The outgoing vice mayor had earlier said he wants the owners of businesses to renew their mayor’s business permits only once every two years instead of every year.
Additionally, Labella said, the renewal of business permits and payment of taxes will be done in batches to avoid overcrowding at the City Hall.
Labella said the renewal of business permits will be done in alphabetical order and in three batches in January 2020.
The city has around 39,000 business establishments in 80 barangays. The owners pay their taxes annually.
In 2020, business owners will have to renew their permits starting on Jan. 4. The renewal will end on Jan. 25.
Labella said this method would likely discourage the business owners from renewing their permits near the deadline.
“They will be comfortable in paying taxes,” he said.
The business owner who fails to renew on time will have to pay a 25 percent surchage.
Labella further said those business owners who fail to obey the guidelines on the permit renewal will still be entertained by the CTO. No penalties will be imposed on them as long as they process their obligations within the Jan. 4 to 25 timeframe.
He said he will push for the ordinance that will allow the two-year validity of business permits. His allied councilors will help him achieve his plan.