SM assures city council of 4,000 Oro-based BPO jobs

By LITO RULONA,
Correspondent

The management of SM Supermalls has assured the city council’s Committees on Ways and Means, Trade Commerce and Industry that they would hire at least 4,000 Cagayan de Oro based workers on their Business Process Outsourcing (BPO) tower inside SM CDO Downtown Premier along CM Recto, this city.

SM CDO Downtown Premier Assistant Mall Manager Constantine Arce issued an assuring pledge to City Council Committee Chairman and Vice-Chairman George Goking and Rueben Daba during Tuesday’s committee meeting.

Because of such pledging assurance, the twin committees approved SM CDO Downtown Premier be accredited with the Philippine Economic Zone Authority (Peza) under provisions of Republic Act 8748, the Special Economic Zone Act of  1995.

“We have no doubt on their assuring statement that they would prioritized and hire all 4,000 workers from Cagayan de Oro and even nearby municipalities from the province. That is the reason that we recommend for the approval of their request to the plenary,” Goking said.

The committee’s approval was also based on the City Legal Office (CLO) officer-in-charge Atty. Donald Delegencia’s recommendation for the approval provided some of the local taxes should be paid to the city government.

Delegencia’s recommendation also states that under Section 4, Chapter III, Section 24 of Republic Act 7916 is hereby amended to read as follows: Section 24, Exemption from National and Local Taxes – Except for real property taxes on the land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the Ecozone.

In lieu thereof, five percent (5%) of the gross income earned by all business enterprise within the Ecozone shall be paid and remitted as follows: Three percent (3%) to the national government and two percent (2%) which shall be directly remitted by the business establishments to the treasurer’s office of the municipality or city where the enterprise is located.

Section 5, Chapter III, section 25 of the Republic Act 7916 is hereby amended to read as follows: Section 25, Applicable National and Local Taxes. – All persons and service establishments in the ecozone shall be subjected to national and local taxes under the National Internal Revenue Code and the Local Government Code.

Delegencia claimed that based on the foregoing provisions, it is clear that except for Real Property Taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within ecozones. Meaning, that the city government of Cagayan de Oro can no longer assess and collect business taxes and real property on building and machineries from the applicant and other Peza accredited establishments operating therein.

It was also suggested that a cost-benefit analysis be conducted by the City Council before it decides whether or not to endorse SM CDO Downtown Premier application for Peza accreditation.