THE Cebu Provincial Government plans to increase real property taxes and other taxes by amending the Provincial Revenue Code this year.
Provincial Treasurer Emmanuel Guial told reporters that his office has yet to finalize the draft to amend Ordinance 2008-10, or the Revenue Code of Cebu.
But Guial clarified that their plan to amend the Province’s Revenue Code is no way related to the implementation of the Tax Reform for Acceleration and Inclusion (Train) Law.
Guial said that under Republic Act 7160 or the Local Government Code, LGUs are allowed to increase their real property taxes and other taxes every five years.
Guial said they are proposing a 10 percent increase in real property taxes and other taxes.
Based on RA 7160, an LGU can adjust its tax rates provided that it will not exceed 10 percent of the fixed rates.
Guial admitted that they were not able to implement an increase in taxes in 2012 as they were not able to prepare a draft amendment. The last amendment to the Province’s Revenue Code was in 2008.
But in 2015, the Cebu Provincial Board approved amendments in the amusement tax and taxes from sand and gravel extraction.
Guial said they are aiming to prepare a draft amendment this month before submitting it to the Provincial Legal Office for review.
Once Cebu Gov. Hilario Davide III endorses the draft amendment to the PB, it will be up for discussion and approval, Guial added.
Last year, the Cebu Provincial Government was able to collect P74.5 million in real property taxes, an increase of 18.66 percent compared to the previous year, which collected only P62.8 million. (JKV)