Cockpit operators oppose tax increase

Cockpit operators opposed a plan by the Cebu City government to double  taxes and other fees imposed on their operations.

In a public hearing yesterday,  Vitoriano Chiongbian, operator of the  Grand Tejero Arena, said any increase in taxes is “discriminatory” to three legitimate cockpit operators in the city.

“Spare us legitimate owners and do not collect  additional taxes  from us because we have been contributing to the city no matter how it hurts,” he said.

Chiongbian said they could not also pass on additional taxes to patron  especially with their dwindling visits and bets as a result of the economic difficulties.

If tax increases are necessary, Chiongbian asked the City Council to just increase their annual taxes and permit fees but not fees charged per cockfight.

Agsungot barangay captain Pastor Alcover II asked the City Council to first study  the frequency of cockfights and how much money is earned there  before any new tax adjustment is made.

He said any increase in fees would deprive cockfight enthusiasts of their favorite pastime, which is already a part of  Cebuano culture.

“We have long been  overtaxed. If taxed some more, this will only cause  illegal tigbakay cockfights to mushroom in the barangays,” he said.

The Cebu City Council’s  public hearing drew comments on the  proposal of Councilor Augustus Pe Jr. to amend the city tax ordinance to increase taxes and other fees on cockpit  operations.

As proposed, the annual tax of P10,000 on cockpits will double to P20,000 while the per cockfight fee of P50 will be increased to P100.

The issuance of special permits for cockfights held on weekdays will be charged  P200 instead of P100.

Daily charges for an   international derby would be raised from P5,000 to P10,000 while the per cockfight charge would double  from P150 to P300.

Chiongbian said there was  a big disparity between  taxes imposed on cockpits and other places of amusement.

While moviehouse operators, for example, can pass on their tax payments to  moviegoers,  cockpit operators can’t do the same without driving away their patrons to  competitors especially those outside of Cebu City where regulations are more lenient.

“We only started operations (of the Grand Tejero Arena) in January (2012) and we expect to recover the cost of our operations in the next eight to 10 years.

“Had the proposal (to increase taxes and other fees) been presented earlier, we  would not have proceeded with this endeavor,” he said.

Chiongbian said tax increase was counterproductive, discriminatory, unfair and oppressive to cockpit operators.

He said that bets placed per cockfight are now an average of P3,000.   The  cockpit operator gets a 10 percent commission of the winning bet, which amounts  to P300.

Chiongbian said operators don’t  necessarily pocket the whole amount.  They said they only get P100 while the remaining P200 goes to the city government as taxes.

“It will be a final blow against us if you double the taxes,” he said.