Goking tells Bañez to review oro firms declared under Peza

By LITO RULONA,
Correspondent

An estimate of P100 million worth of unpaid taxes by several business companies in the city who are officially listed and now seeks application under the Philippine Economic Zone Authority (Peza) in Metro Manila.

This was disclosed by City Councilor George Goking, chairman of the Committee on Finance, Trade and Industry that he is now recommending it’s approval to conduct immediate investigation to business entities under Peza on Tuesday.

During the meeting held at the city council, Goking has already instructed City Treasurer Office (CTO) Chief Glenn Bañez to conduct immediate review of companies who were declared under Peza.

Goking said he is positive that firms located at export processing zones which have availed of income tax holidays are still liable for the payment of real property tax despite being a member under Philippine Economic Zone Authority (Peza).

“They must face full review considering that no less than P900 Million RPT is set to be collected by the city government,” he pointed out.

He said after the full review, the city government will sent notices despite having incentive provided under the provisions of Executive Order 226 or the Omnibus Investments Code of 1987.

Under the Code, enterprises registered with Peza which are availing of incentive, are exempt from the payment of local taxes, licenses, fees, and imposts, except real property tax.

Peza, on the other hand, said that the provisions of the Local Government Code must prevail.

The LGC enumerated those who are exempt from the payment of real property tax. They are real property owned by the Republic of the Philippines; charitable institutions, churches; and machinery and equipment actually, directly and exclusively used by water districts and government-owned corporations which are engaged in the supply and distribution of water and or generation of power; all real properties owned by duly registered cooperatives; and machinery and equipment used for pollution control and environmental protection.

For himself, Bañez said there are at least eight Peza registered companies here that are enjoying exemption from the real estate taxes and was discussed under the committee that the city and the barangays has been deprive from its income.

“Tan-awon gyud kini to what extent on their exemption from the real state taxes. Is it for the entire life of the corporation that they are exempted or they only enjoy up to the certain number of years of existing. We will look this into because we are looking for the possible income of the city,” he said.

He said he already is getting some update from the City Assessors Office (CAO) the standard procedure they are getting from the Peza. Company under Peza should inform the assessors office on what benefits they had been getting.

“They have to get clearance from the city government and getting endorsement from the city council. If they failed to get clearances then they should correct this failure or they are going to pay taxes to the city government,” he said.