By Roy Moraleta
Reeling still from the financial distress brought about by the obtaining Pandemic, notwithstanding the painful traces of Super Typhoon Yolanda still being felt by many, Taclobanons may yet again face another economic anguish – exorbitant tax hike.
Reports obtained by LEYTE FILES Roy Moraleta Reports said that the Sanguniang Panglungsod of Tacloban City is bent on passing and approving this week on their regular session a tax ordinance which will raise to exorbitant proportions the real property taxes.
The business community in Tacloban City have expressed concerning repercussions of the said move of the city council to revise the market values of real properties and classification of lands in the city, which, according to them, will unduly lead to exponential increases in real property taxes from 60% up to 1500% in increase.
If not averted, the said proposed adjustment “will unduly trigger unreasonable increases in real property taxes and could potentially hurt businesses,” says Eugene Tan, president of the Philippine Chamber of Commerce and Industry Tacloban-Leyte.
Tan argued that the business sector in Tacloban is still reeling from rising cost of inputs, let alone the still obtaining financial distress brought about by Super Typhoon Yolanda, and the on-going pandemic which has largely affected the financial resources and capability of real property owners in meeting its current tax obligations.
Should the Sanguniang Panglungsod choose to ignore their fears and decide to pursue the passage and approval of the ordinance despite their opposition, Tan fears that the city government will be unduly over burdening Taclobanons, particularly the real property owners of unreasonably exorbitant and certainly ominous charges.
Tan in his 4-page position letter told the members of the Sanguniang Panglungsod to hold in abeyance the proposed ordinance pending the passage of the Real Property Valuation Reforms under Package 3 of the Comprehensive Tax Reform Program by Congress.
“We humbly request the Honorable Members of the Sanguniang Panglungsod of the City of Tacloban to defer the passage and approval of the ordinance.”
As of press time, it’s not clear if the said letter was ever received by the secretariat of the Sanguniang Panglungsod of Tacloban City.
OMINOUS AND UNFRIENDLY
Other business group in the city – the Filipino Chinese Chamber of Commerce and Industry, as well as the contractor’s association said the move of the city government is inarguably bothersome and certainly is unfriendly to the business community.
“Bangin magbalhin na ngadto ha Palo o ha iba nga lugar eton mga negosyante didi ha Tacloban,” said one local businessman who asked not to be named.
Mr. Pedro Tan, a representative of the Department of Trade and Industry DTI 8 said the proposed tax hike of the city government is abrupt, certainly ominous, and extraordinarily high. Tan was present during the Saturday October 8 forum hosted by PCCI at the SMED Center, Tacloban City.
According to him, while DTI region have yet to get formally notified about the matter by the Tacloban City government, he said it is a major concern which he will immediately discuss with the regional director.
DEFECTIVE PROCESS IN ASSESSMENT
LEYTE FILES Roy Moraleta Reports learned that there was no actual field appraisal done on the appraisal and assessment of real properties in the city. The same failure was cited in the PCCI position letter. It claimed that the city assessor’s office just made their assessments based on deed of sales or conveyance documents for previous years as found in their files.
Tan argued that if it was the only basis of their assessment and valuation, “the proposed market values do not truly reflect the reliable estimated market values of the properties subject of the ordinance, hence making the real property tax assessment inequitable.”
Tan suspects that the proposed assessment of lands and valuation of real properties subject in the ordinance does not reflect on its actual use, hence defective and flawed.
