Schools told to pay taxes, get more city scholars

THE Cebu city government is now reviewing its scholarship program to determine if the participating schools are properly paying taxes to the city and has complied with the standards of the Commission of Higher Education (CHED).

“It will no longer be enough that they will just present us their business permits or SEC registration,” Councilor Jose Daluz III, chairman of the city’s scholarship committee said.

Aside from their respective tax payments to the city, the committee will also check the qualifications of the teachers, courses offered and if the scholars are equitably distributed among the 21 participating schools.

The highest tax-paying school should be given a maximum of 20 percent of the total number of scholars enrolled for the year.

“This is one way of encouraging the schools to pay more taxes to get more scholars,” said Daluz.

He said the scheme is seen to address the city’s concerns on schools that are not paying taxes because of claims they are operating as nonstock and nonprofit schools.

“We want the schools to contribute (in terms of taxes) so  the city’s scholarship program will also be sustained,” said Daluz.

Daluz said the team headed by City Treasurer Ofelia Oliva is now visiting the 21 participating schools to dialogue with the school administration on the city’s new scheme.

The scheme, however, is only applicable to private schools and not to state universities like UP, Cebu Normal University and Cebu Technological University, which are tax exempt

Each city scholar is entitled P10,000 per semester. The city had 7,100 scholars for school year 2010 to 2011.

Daluz said the scholarship committee is expecting 5,350 freshmen in the coming school year.

This would bring the city’s number of scholars to 12,450.

The city government has allocated P200 million this year for its scholarship program.

“We wanted to know if the scholars are equitably distributed to also prevent wastage of city funds,” Daluz said.

For school year 2010 to 2011, the Asian College of Technology (ACT) of Councilor Rodrigo Abellanosa had the most number of city scholar enrollees totaling to 5,000. /Doris C. Bongcac, Chief of Reporters