Councilor Noel Wenceslao, chairman of the committee on budget and finance, told SunStar Cebu on Sunday, Nov. 20 that he cannot provide an estimate yet on the percentage of increase on the city’s taxes, especially on real property tax (RPT).
Wenceslao said that the City Council was not able to finish its discussion on RPT and business taxes during the public hearing held last Nov. 17 and 18.
He added that representatives from the business sector were allowed to speak during the public hearing, and they are supporting the increase on business tax but further discussions have to be made on the proposed increase for the RPT.
The increase of the RPT is dependent on the fair market value of property and with the current development rate, some areas in the city could have a 7,000 percent increase, he explained.
Wenceslao further said that properties located in Cebu IT Park could have a 1,000 percent increase, while those in Cebu Business Park could go up to even 7,000 percent.
But the councilor clarified that these are all proposals and the City Council will have to collectively agree on how to go about the increase to make sure that it will not be “excessive and oppressive.”
It is also possible that the increase would not be implemented in one blow, but rather would be imposed on a staggered basis, said Wenceslao.
On Monday, the city assessor and city treasurer will further discuss the current RPT and the proposed rates, said Wenceslao.
According to Wenceslao, the proposed increase on business tax went smoothly as the City Government will just follow the prescribed 10 percent increase based on the National Revenue Code.
Permit fees and regulatory fees of various City Hall offices will also be discussed on Monday, he added.
The councilor is hopeful that the proposed ordinance will be approved by the City Council not later than the second week of December this year. (IRT)