THE Cebu City Government is expected to earn P1.5 billion in business taxes this month, as it started accepting business permit applications and renewals yesterday.
The City Treasurer’s Office (CTO) has established a one-stop shop at the Trade Hall of SM City Cebu at the North Reclamation Area (NRA). It is open from 9 a.m. to 6 p.m. from Jan. 2 to Jan. 20.
In an interview yesterday, Acting City Treasurer Diwa Cuevas said their target revenue for the business permit application and renewal this month is higher compared to what they generated last year, which was P1 billion.
Cuevas said the increase is due to the opening of new and big establishments in the city, including the SM Seaside City Cebu at the South Road Properties and the Robinson’s Galleria at the NRA, among many others.
SM Seaside opened last November while Robinsons Galleria opened in early December.
P2B target
“Many establishments opened. What they earned last) December will already form part of their revenue, of their taxable income. Since they opened before Christmas, it is expected that they generated a large income. So we are expecting a large collection,” she said in Cebuano.
The P1.5-billion income CTO is expecting to generate this month forms part of the P2-billion target it expects to earn in the entire year.
Cuevas said they expect to earn the remaining P500 million the next time the CTO accepts business permit applications and renewals, which it conducts quarterly, or on April 20, July 20 and Oct. 20.
She said most business establishments secure a business permit in January that is why their target this month is big.
Penalties
According to Cuevas, business establishments can fill up the application form once they get to the one-stop shop at SM. They will then be issued a temporary permit. They have until April 20 to comply with all the requirements, such as comparative report of their income for 2013 and 2014, barangay clearance, clearance from the Bureau of Fire Protection and sanitary permits, among others.
For those who will submit all the requirements, Cuevas said they will be immediately receive a permanent business permit.
Business establishments who fail to secure a temporary or permanent business permit this month will be imposed a two-percent monthly interest from their tax due and a one-time surcharge of 25 percent.
Cuevas said they’ve asked the City Council to allow them to extend the period of accepting business permit applications and renewals to Jan. 30.