Proposed tax relief questioned

Local

THE Cebu City Treasurer’s Office has raised legal and fairness concerns over a proposal to waive penalties and surcharges on business permits for establishments affected by Typhoon Tino.

It said such relief cannot be granted without an ordinance and may be unfair to taxpayers who settled their dues on time.

Officer-in-Charge City Treasurer Emma Villarete said the city cannot issue a waiver through executive action alone.

“Any waiver of penalties, surcharges or interests or any form of tax reliefs should be granted by virtue of or through a validly enacted ordinance, in accordance with Section 192 of the LGC of 1991 and Article 282 of the Implementing Rules and Regulations of the LGC,” Villarete wrote in a letter transmitted to the city council earlier this week.

The caution comes as the council urges Mayor Nestor Archival to approve a waiver of penalties and related fees for businesses located in barangays severely affected by the November 4 typhoon.

Villarete also pointed out that businesses that paid taxes quarterly had already missed the deadline for their fourth-quarter installment, which lapsed on October 21, 2025—two weeks before Typhoon Tino hit.

“The Fourth (4th) Quarter installment due already lapsed after the deadline set on October 21, 2025; hence, business owners who failed to pay the same had incurred tax penalty, surcharge and interest as of October 22nd, or even prior to the occurrence of Typhoon ‘Tino’ last November 4, 2025,” she said.

She added that granting a blanket waiver “may signal to be unfair for those who have faithfully complied and paid their tax obligations on time.”

Instead of a full waiver, the City Treasurer’s Office (CTO) recommended allowing affected businesses to declare reduced or zero sales from November 4 to December 31, 2025, which would result in lower tax assessments when they renew their permits for 2026.

This “sales adjustment” mechanism, Villarete said, may be applied by the CTO to reflect economic losses without violating the Local Government Code.

The recommendation follows a resolution by the City Council urging the mayor to order the implementation of a penalty waiver for businesses battered by Typhoon Tino.

The measure, authored by Councilor Jun Alcover, aims to ease the financial strain on firms struggling to recover.

“On November 4, 2025, Typhoon ‘Tino’ severely hit Cebu City, resulting in widespread destruction of property, loss of lives, and disruption of livelihood and business operations,” Alcover said.

He added that waiving penalties and related fees would “provide much-needed financial relief and allow them to recover and resume operations faster, thereby contributing to the restoration of the local economy.”

Typhoon Tino (international name: Kalmaegi) brought torrential rains, destructive winds, flooding, and power outages across Cebu.

As of Tuesday, the National Disaster Risk Reduction and Management Council reported 232 deaths nationwide, including 150 in Cebu. At least 57 people remain missing in the province, while 532 others were injured across the Visayas.

Cebu City recorded 33 deaths and five missing, prompting the council to declare a state of calamity.

The mayor has yet to act on the waiver proposal.

If approved, the City Treasurer’s Office will draft implementing guidelines in coordination with the Business Permit and Licensing Office, Department of Trade and Industry, and the City Disaster Risk Reduction and Management Office.(TGP)