AN ordinance that exempts social housing beneficiaries from payment of transfer tax was approved by the Cebu City Council in its session yesterday afternoon.
The transfer tax is computed based on one half of one percent of the actual lot cost.
“Passage of the ordinance will allow over 1, 000 socialized housing beneficiaries to achieve security of land tenure,” said Councilor Alvin Dizon, who authored the ordinance.
The ordinance does away with requiring qualified beneficiaries to submit certifications of full payment issued by the City Treasurers Office (CTO) and the Department for the Welfare of the Urban Poor (DWEP).
Instead, Dizon said the CTO would immediately issue certification of transfer tax exemption based on the ordinance.
Councilor Nida Cabrera asked whether the ordinance also covers beneficiaries from other housing sites.
Dizon said the city government can deal with these beneficiaries on a case to case basis.
Councilor Sisinio Andales proposed a 50 percent tax exemption in order not to deprive the city government of revenues.
But Councilor Edgar Labella said transfer tax exemptions fall under “the social justice provision” of the Constitution.
Councilor Jose Daluz III said the city isn’t earning from transfer taxes anyway since 2004. Chief of Reporters Doris C. Bongcac