Cebu City’s school and hospital tax campaign may be reinstituted

The newly reelected mayor of Cebu City, Mayor Michael Rama, wishes to revisit the agglomeration of franchise and business taxes from hospitals and schools.

It is quoted from him that “The matter of franchise tax, scholarship and the taxes which may be due from hospitals and schools shall be addressed through a winnable and expedient solution”. He also emphasized that he has no interest in mocking the public, but he will accumulate taxes contentiously.

“We might have to sue some people. There are a lot of contentious matters,” explained Rama in relation to the franchise tax controversy.

He did not intricate on his statement but questioned, “Are they still giving to Pagtambayayong Foundation?”

Rama said he wants to pursue providing financial aid to senior citizens and persons with disabilities. He targets to provide senior citizens a cash allotment of P1,000 monthly by next year.

Rama demands for a comprehensive and serious meeting with the local government departments involved – Management Information Computer Service, City Treasurer’s Office, City Assessor’s Office and the business sector on the City’s tax collection, prior to thinking about fleshing out taxes to better nurse the public.

As to schools and hospitals executing business in their City, but who claim to be discharged from paying business taxes, Rama hinted of a possible compromise.

In 2007, Cebu Institute of Technology, Sacred Heart Hospital, Cebu Doctors’ University, Southwestern University, Cebu North General Hospital, Velez General Hospital and Cebu Doctors’ Hospital, lodged a suit to counter the City, hesitating to pay business tax.