MANILA, Philippines–Telecommunications giant Globe Telecom has asked the Manila City government to exempt it from paying local taxes, more than a week after a petition filed by its rival, Smart Communications Inc., was approved.
On April 19, the city council passed an ordinance granting Smart’s request that it be exempted from paying franchise and real property taxes on its telecommunications equipment at cell sites within Manila.
The exemption was granted despite the concern of some councilors that it would lead to a decrease in the city government’s revenue collection.
The ordinance granting a similar exemption for Globe, “under certain terms and conditions,” has been referred to the council’s committee on laws which will take it up on first reading in the coming weeks.
Majority floor leader Maria Sheilah Lacuna-Pangan, author of both ordinances, insisted that both firms were entitled to tax breaks based on their Congress-issued legislative franchises.
“According to their franchises, when they pay to the national government, they should be exempted from certain taxes imposed by local governments,” she said in an interview.
She added that the feared losses in revenue collection were a misconception. “There is nothing to lose because they have never paid local franchise taxes to us before.”