A national government plan to scrap the community tax certificates or cedula cannot be done overnight because of its historical significance, said Cebu City Mayor Michael Rama.
Rama said plans to scrap the cedula may even reach the National Historical Commission (NHC) since it originated from a Spanish era law.
Bureau of International Revenue (BIR) Commissioner Kim Henares proposed the scrapping of the cedula, saying it has become useless since the government doesn’t get a share of taxes despite spending on the printing of these papers.
Cebu City Treasurer Emma Villarete said Cebu City could lose at least P50 million in local revenues per year if the cedula is removed.
Smaller local government units (LGUs) are especially vulnerable to the abolition of the community tax, she said.
“I am not ready to put up further discussion on the matter,” Rama said when sought for comment.
The mayor said other LGUs will complain about it because they will lose revenues.
Villarete said the city government buys its cedula forms at P57.50 per booklet from the BIR. It consumes 3,000 to 10,000 booklets per year.
She said there was an earlier proposal for the city to already print its own community tax form so that it can be personalized.
“But the BIR won’t agree because they would authorize its printing,” Villarete said.
She also mentioned about the P389.6 million in payables incurred since last year that were owed to utility firms, suppliers, project contractors, food caterers and schools participating in its scholarship program.
Villarete said her office also deferred payment of P150 million in payables referred to her office last month since they prioritized the release of the P4,000 senior citizen assistance last March 25 and 26.
The city had to set aside P200 million for the first quarter assistance of the 60, 000 senior citizens.
“But we’re readying the payments now,” Villarete said.
Villarete said the CTO already issued checks to settle at least P90 million of the P150 million obligation leaving a balance of only P60 million.
She said they are also waiting for the real property taxes collection to add to the city’s funds.Chief of Reporters Doris C. Bongcac