SHOULD the coronavirus disease (Covid-19) pandemic in the city prolong, Davao City Councilor Danilo Dayanghirang said the committee on finance, ways, and means and appropriations will be passing more measures to address issues on local taxes.
Dayanghirang, who is the committee's chairperson, said in a radio interview on Thursday, June 18, that the city's tax collection is currently affected due to the ongoing Covid-19 pandemic, which resulted to some establishments and offices to either implement a skeleton workforce, partial lay off, or total closure.
The councilor said since the community quarantine was implemented in the city beginning March this year, the 19th City Council had already passed measures to delay some tax collections and payments as a way “to provide taxpayers ample time to pay their tax dues without incurring penalties”.
The 19th City Council, on March 20, passed a resolution enacting an ordinance extending the deadline of the second quarterly installment for payment of business tax, and first quarterly installment for real property tax and additional levy on real property for the Special Education Fund (SEF) will all be moved to June 30, 2020, due to Covid-19 in the Philippines.
According to the ordinance, which was certified as urgent by the City Mayor’s Office, there is a need to extend the deadline of tax payments following the declaration of the state of a public health emergency, which resulted in the strict measures implemented on government transactions.
Originally, the second quarterly installment for the local business tax was due on April 20 while the first quarterly installment of real property tax and additional levy on real property for SEF was on March 31. Rental fees for public markets, Davao City Overland Transport Terminal, Sta. Ana Port, Magsaysay Parks covering the period from March to June 2020, is due on March 20. Rental fees for Pasabulong Center covering the period from March to June 2020 is supposedly due on March 10.
But with the threat of Covid-19 still in place, along with the city's gradual economic recovery, Dayanghirang said, together with the City Treasurer's Office (CTO), they will study if another extension on taxes and rental fees will be possible.
"We will come up with a joint consensus to be laid down to the City Mayor's Office. We will not pass an amendment to Real Property ordinance," the councilor said.
Although he did not specify if the adjustments will be made through an executive order.
The Council, meanwhile, passed an ordinance in June this year that provides relief to businesses to mitigate the adverse economic effects of Covid-19.
The City Government of Davao will deduct from the businesses' gross sales the equivalent amount they waived from their lessees' rental fee.
However, during the deliberation of the City Council, Dayanghirang said the decision of the business establishments to waive rental fees is voluntary.
With this, Dayanghirang said investments in the city are expected to decline.
Another thing that the city will look into is additional funding through adjustments made in the collection of income sources.
He said there is a possibility that the city government will be adjusting or realigning some funds that were intended for its infrastructure projects.
Although, he also did not specify which projects might be realigned.
"We will see for the next three months. But since some establishments are partially opened, we'll see. But again, the unemployment is still high," Dayanghirang said, adding there is a need to provide more economic opportunities to both the business sector and the working force.
In terms of adapting to the new normal in terms of tax collection, he said CTO is already going towards "digitalization" since government transaction in offices is still highly discouraged to avoid mass gatherings.
He also urged business establishments to gradually pay their taxes. The city government will not force the public if they are still not capable of paying their taxes and collections.