A lengthy discussion over “other business” classification for raking income and business taxes puzzled some councilors at the start of the proposed P13.5-billion 2014 budget hearing on Wednesday in Quezon City.
Council majority floor leader Bong Suntay (fourth district) questioned city treasurer Ed Villanueva why business taxes and other revenues have not improved to meet the city target while the other business classification has been noted to increase its collections over the years.
Villanueva explained that national laws on taxation do not define specifically other kinds of business to be taxed. He added that Quezon City taxpayers always declare their incomes in lump sum and thus, deprive the city of deserved income.
“We gave our taxpayers a tax declaration sheet first to determine their business but once it reaches our computers the tax that should be paid becomes lump sum,” he stressed.
Victor “Jun” Ferrer suggested that the information technology (IT) department must create a new program to classify businesses under the ‘other business classification, to correct and collect proper taxes.
Dr. Victor Endriga, city treasurer for over nine years and is now the City Administrator cited that ‘restaurant’ business classification is not to be found in national revenue code, prompting them during his term to create a revenue code for the city.
“It was designed to collect proper taxes from businesses already defined by the new city revenue code,” Endriga explained, saying that a construction firm could also be levied as a contractor and if found to be engaged in wholesaling a separate taxation for that kind of business is also levied.