NextGen Day

To earn money for its top development initiatives, the municipal administration is currently looking into the possibility of raising corporate tax rates by at least 40%.

The mandate of local government units (LGUs) to implement not only the Salary Standardization Law but also to raise funds for the city’s operations and its 51 priority development projects under the administration of Mayor Benjamin Magalong, according to city treasurer Alex Cabarrubias, is what drives the need to raise the business tax rates in the city.

Magalong is advocating for several expensive projects, including the construction of parks, markets, and roads, among others, which are expected to be paid for with money from the city, through public-private partnerships, or through other means.

According to Cabarrubias, “It will either be a one-time rise or gradual.”

He claimed that the city’s income from the source has been stagnant and that the local government has not changed its corporate tax rates in the last 22 years.

According to him, LGUs are required by the Local Government Code every five years to conduct a broad review of their company tax table.

Given the 22-year-old tax table’s lapse, he stated, “the municipal administration will be able to fix its regressive tax table by boosting the rates up to 40%.”

He claimed that although the city had requested an increase from the Bureau of Local Governance and Finance in 2019, the coronavirus disease 2019 (Covid-19) pandemic had surpassed it.

He said that the city’s reliance on its Internal Revenue Allotment, now known as the National Tax Allotment, was caused by the city’s refusal to update its corporate tax table.

Cabarrubias, on the other hand, made it clear that theirs is only a proposal and that doing so necessitates an ordinance and a public hearing with the affected industry.

By 2024, he hoped, the necessary ordinance for the business tax rise would be enacted and prepared for implementation.

Please follow and like us:

2

2k

20