BY JOHNNY NOVERA
AS early as the middle of last month, we heard of the plan of Iloilo City to increase the rate of real property tax (RPT).
In our column of July 15, 2014, we expressed the view that at this stage of our development, with the expansion of our business areas, we believe what is important is to attract more investors, and it is no time to talk of increasing taxes.
By coincidence, the following week, various business groups and associations in Iloilo led by the Iloilo Business Club and the Iloilo Chapter of the Philippine Chamber of Commerce and Industry (PCCI) also made a stand for the city to improve instead tax collection and issued a statement against any increase in RPT at this time for a similar reason that it might drive away investors.
We thought Mayor Jed Patrick Mabilog should welcome the unity and concern of the business sector to keep the city attractive to investment by not imposing new taxes.
On Saturday, however, as headlined by Panay News, the city council’s Committee on Ways and Means presided by Kagawad Plaridel Nava conducted a hearing on the proposed tax increase, reportedly attended by 60 representatives from the Parent Teachers Associations (PTA), barangay leaders and a number of homeowners. The group reportedly endorsed the proposed ordinance of increasing taxes on real property so it can raise P83 million for the city coffers.
Since the Ways and Means Committee will meet again on August 26, its recommendation on the tax ordinance will probably be endorsed next to the city council for approval.
How come the business groups, many of whose members are real property owners, have not been invited when Kagawad Nava conducted his committee hearing last week?
To be fair, Kagawad Nava should extend his hearing to other groups like those from the business sector and associations that made a stand against the increase before making his committee’s final recommendation of the ordinance.
Moreover, the city must also make it a procedure to reveal its budget plan every year to its constituents so that they will know if income is properly accounted for and expenses are reasonably incurred. This is what we call budgeting and control applied to any organization.
In Makati City, for example, its quarterly financial statement is posted on the bulletin board, and so with the number of personnel identified as to whether permanent, temporary or casual in status, and the payroll for the period. (For comments or reactions, please e-mail to jnoveracompany@yahoo.com)/PN
