Davao City provides tax remedies for biz sector

By Che Palicte

July 14, 2020, 9:54 pm

DAVAO CITY – The city council here approved Tuesday three remedial measures to provide relief to local businesses affected by the coronavirus disease (Covid-19) crisis.

“The city council is ready and very open to helping the business owners by passing ordinances that would give them more time to settle their taxes considering the situation in the city,” said Councilor Danilo Dayanghirang, chairperson of the City Council Committee on Finance, Ways and Means.

First of the three ordinances passed is the Ordinance No. 0304-20 or the "ordinance granting a three-month extension on the deadline of payment for the third quarterly installment for Real Property Tax (RPT) and additional levy on real property for the Special Education Fund (SEF)."

Under the measure, taxpayers are given until December 31 to pay the third quarterly installment of their RPT originally due on September 30.

“According to the Ordinance, both the 3rd and 4th installment of the RPT shall be due on December 31, 2020, and no interest shall be imposed for the 3rd installment if paid within the extended deadline. A discount of 10 percent for prompt payment to the taxpayer if one chose to pay on time will also be given,” said lawyer Lawrence Bantiding, the head of the City Treasurer’s Office (CTO).

Under the second measure, the city government will give tax amnesty or relief to delinquent RPT payers through Ordinance No. 0218-20.

“This shall apply to assessed penalties and interest on delinquent back taxes relating to real properties as of December 31, 2019, and prior years. All accrued penalties and interest shall be condoned only upon settlement of RPT within 6 months from the effectivity of the Ordinance,” Bantiding said.

Meanwhile, the third legislative action seeks to assist vendors of city-owned public markets by granting a 60-percent reduction on the rental fees of stalls or booths that are open from April 1 to June 30, 2020.

“If we remember, we waived the payment for the closed stalls inside government-owned spaces during the quarantine. For the open stalls but their incomes are reduced because of Covid-19, they were given a 60-percent reduction on their rental fees. For example, if they have rent due to the amount of PHP10,000 per month, now they only pay the amount of PHP4,000,” Dayanghirang said. (PNA)

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