CEBU CITY (April 25, 2024) – Mayor Mike Rama has called for a recall of all exemptions granted to corporations and individuals in relation to real property and other taxes.

Mayor Mike Rama

The mayor gave the order to the City Treasurer’s Office (CTO) after the City Council discovered numerous undocumented tax exemptions.

He said those who granted real property tax (RPT) exemptions without proper documentation could face administrative and criminal charges.

“Dili ta magpataka’g hatag og real property (tax) exemption kay ma-Ombudsman unya ta ana,” Rama said on Ingna’ng Mayor over Sugboanon Channel this morning.

With prior Council imprimatur, Rama said the City granted RPT exemptions to businesses as incentives, especially to exporters and those offering employment opportunities to Cebuanos, but these benefits ought to be limited.

Government generally grant exemptions for three to six years for pioneering ventures, new but non-pioneering projects, and expansion projects, mainly for these enterprises to recoup their investments soon.

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However, the mayor questioned why there are still some businesses reportedly being granted with RPT exemptions, even though he had stopped the practice since he assumed office in 2022.

Dili ta magpataka’g hatag og real property (tax) exemption kay ma-Ombudsman unya ta ana

Mayor Mike Rama, on the Council’s findings that the City granted numerous undocumented tax exemptions

Rama said he wants to know the names of the businesses and individuals the city granted RPT exemptions and the offices that gave them the privilege even until now.

“Kung wala’y record sa mga (businesses with) exemptions, corruption kana,” the mayor said.

𝗖𝗶𝘁𝘆 𝗖𝗼𝘂𝗻𝗰𝗶𝗹. The local legislators listen to Mayor Mike Rama during the inaugural session of the 16th Sangguniang Panlungsod on Juy 5, 2023.

According to the Local Government Code, RPT exemptions can only be granted to charitable institutions, machineries, property owned by registered cooperatives, and machinery and equipment used for pollution control and environmental protection.

Also exempted are properties actually, directly and exclusively used for religious, charitable, or educational purposes, and those owned by the government and government instrumentalities. | RMN / jkv

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