TAX NEWS - 2010

Philippines Tax: SM Prime, Veco awarded as Cebu City's top taxpayers

SM Prime Holdings and the Visayan Electric Company (Veco) were the top taxpayers for real property and business taxes in Cebu City in 2009.

They were among 210 outstanding taxpayers awarded Friday night by the Cebu City government at the Cebu Grand Convention Center.

If Mayor Tomas Osmeña had his way, the city wouldn't have to rely on tax collections to fund vital public services.

In his speech during the awarding rites Osmeña urged city officials to find ways to supplement the city's income.

"Of course, I'm referring to our real estate venture, the South Road Property (SRP)," the mayor said.

He also asked the people to continue to work with the incoming mayor and the new team who will be running City Hall after June 30.

"Over the last year, we have booked over P4 billion in sales (from the SRP). This P4 billion will be received over a period of five to six years so this will supplement our other income and it could also address our debt service. Now the money is coming in," he added

Osmeña recalled that when he started as mayor of Cebu City in 1988, the city had only P10 to P15 million in the bank.

"Today our bank balance is pushing P3 billion," he boasted.

Mayor Osmeña discussed his administration's fiscal stewardship.

Last year, he said, the income of Cebu City aside from revenues from the national government amounted to P1.9 billion.

"If we want to compare it, for example to the province of Cebu, their income outside of the IRA from the national government is roughly P600 to P700 million and of course, their population is three times bigger and their land area is approximately 15 times bigger than Cebu City," he said.

SM Prime, which operates the SM shopping mall in Cebu City's reclamation area, was the biggest real property taxpayer and the second biggest business taxpayer.

Veco was the top business taxpayer.

Cebu City Treasurer's officer-in-charge Ofelia Oliva said the Taxpayers Outstanding Moment (TOM) Award aims to encourage Cebuanos to pay their taxes.

This year, even small taxpayers who are paying religiously are recognized.

The city also awarded the top four Philippine Economic Zone Authority (Peza) Registered Business Establishment in the City. These are Primary Properties Corporation, Lexmark Research and Development Corp., Cebu Property Ventures and Development Corporation and Skyrise Realty and Development Corp.

The city also cited Cebu City barangays for their effort in collecting realty tax. The top five are Bario Luz, Guadalupe, Kamputhaw, Apas, Lahug and Sto. Nino.

The Cebu City government awarded 210 individuals and companies as the city's outstanding taxpayers for 2009 in 12 different categories.

Osmeña said he believes the main role of government is to provide services which ordinary people can't get from the private sector such as protection and sanitation.

"And that's the reason we have to collect taxes. If you want the service, somebody should pay for it," Osmeña said.

In his message, Vice Mayor Michael Rama thanked taxpayers and the barangay officials and City Hall employees who helped in collection.

"It is not easy to be a tax collector. Remove tax collector and we'll never ever have revenues," Rama said.

He asked them to continue to help the city government and "continue to think that we are one."