CEBU City Mayor Michael Rama yesterday ordered a review of the tax payment records of telecommunications companies doing business in the city.
He said failure to reach an agreement with the telecom companies may result in legal action.
Telcos and utility firms refused to pay franchise taxes but they agreed to a compromise in which they will each pay P20 million a year to the city.
Poblete told the city council last month that the city’s three-year agreement with Smart, Globe and Digitel already expired last March.
He said this was one of the reasons behind the city’s failure to meet its revenue targets.
The City Treasurers Office only earned P135 million of its P300 million 2012 collection target.
Revenue from compromise payments were among the fund sources for the 2013 budget. /Chief of Reporters Doris C. Bongcac