THE City Government of Davao is waiving interest, penalties, and surcharges incurred for non-payment of all local taxes, fees, charges, and fines for the period of community quarantine (CQ) and enhanced community quarantine (ECQ).
On Thursday, April 16, Davao City Council approved an ordinance waiving the interest, penalties, and surcharges which shall fall due during the period of the CQ and ECQ in Davao City.
Davao City Mayor Sara Duterte-Carpio, who proposed the ordinance to the City Council, said it shall apply to all local taxes, fees, charges, and fines such as amusement taxes and citation tickets, among others.
“Wala moy bayaran nga interest, penalty or surcharges kung dili mo makabayad. Kung unsa to imong principal amount, mao lang to imong bayran. Wala na kay bayran nga lain pa (You will not pay anymore the interest, penalty, or surcharges. Whatever your principal amount is, that is the only amount you will have to pay),” she explained during her interview in 87.5 Davao City Disaster Radio.
During the council session, committee chair on finance, ways and means, and appropriation Danilo Dayanghirang cited pertinent provisions such as the surcharges in failing to pay amusement taxes and the additional payments for failing to pay penalties for citation tickets.
However, Councilor Diosdado Mahipus Jr. expressed reservations on the ordinance and abstained from voting for its approval.
“I do not know if this is the right time. Maybe, we need to perhaps have a committee hearing or public hearing and study this because we are waiving income that is supposed to be poured to the city’s coffers,” he said.
“I am for the relief that will be given to our people except that I am not sure if the procedure will be compliant. At any rate, I will abstain,” he added.
Dayanghirang said the effect will only be minimal because it will only be implemented during the period of CQ and ECQ.
“In fact, there is no income at all because honestly there are no economic activities,” he said.
In a text message, he said the priority right now is to provide relief to taxpayers in this time of crisis brought about by Covid-19.
He said the sources of funds of the city are the business taxes, real property taxes, and the Internal Revenue Allotment (IRA).
“Losses can’t be easily quantified because we need to compute by accounts. With the slowdown of the economy brought by Covid-19, our estimates might be affected,” he said.