Taxable properties total: P25B

By Princess Dawn H. Felicitas

Saturday, February 4, 2012

REAL property taxes in Cebu City may double next year once the City Assessor’s Office finishes the tax mapping and revalidation of real property (RPU) units in the city.

City Assessor Eustaquio Cesa said they were able to assess 212,315 RPUs in the city from January to December last year, as well as 12,780 RPUs that are exempted from taxes.

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The total assessed value of taxable RPUs totaled to at least P71.8 billion while the value of non-taxable RPUs totaled to P46.5 million.

Cesa said non-taxable RPUs include government offices and buildings, schools and churches.

Based on the records of the assessor’s office, the number of RPUs from last year has increased from 205,892 in 2010 with an assessed value of P47.8 billion as well as the number of RPUs that are exempted from taxes that totaled 12,780 with an assessed value of P24.3 billion.

The amount of taxable properties this year totaled to P25.2 billion.

Double

Cesa, in a news conference yesterday, said the amount could double by next year and reach P50 billion once the tax mapping and revalidation of real properties in the city will be fully implemented.

An increase in the amount of taxable properties would also mean an increase on the real property tax collection of the City Government, he said.

To compute for the real property tax, the assessed value of the property should be multiplied by the rate of basic real tax which is pegged at not more than one percent for the provinces and not more than two percent for cities.

Assistant City Assessor Liezel Gonzaga said they have started tax mapping and revalidation of real property units last month using their P20.1-million approved budget for this year.

Gonzaga admitted that their progress in implementing the program will be slower, considering that their proposed budget of P2.4 million to buy vehicles was not approved.

Gonzaga said only P8 million out of the P25 million budget has been approved by the council.

The amount is supposed to be used to hire 90 job order personnel, whose salary will cost P3 million, including for training and to buy IT equipment.

Published in the Sun.Star Cebu newspaper on February 04, 2012.

Ceboom architect still upbeat,cites how Cebu can keep lead

Saturday, February 4, 2012

Pachico A. Seares
Seven Questions

1.) You’re known as the architect of Ceboom, when Cebu’s economic strides first caught the attention of the nation and the world. Much of what Cebu is today economically may be credited in a large part to the foundations laid when you were governor of the province. Do you see Cebu’s growth to continue or do you see the threat of a bubble bursting, such as the collapse of the call center industry and oversupply of condos, hotels, and other housing units? Tell us how Cebu can still survive and prosper despite any turmoil in the economy elsewhere.

Have something to report? Tell us in text, photos or videos.

Historically, the Bisaya tribes had a more advanced civilization than the rest of the archipelago. Before the Hispanic conquest we already had a written language. We were garbed in silk and cotton because of the trade with as far as India and China.

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We were building more efficient and larger seacraft than the Spanish: the flagship of the Spanish armada that was named “El Galleon de Manila” was built in Cebu. The main reason the Visayan group was better developed than the two other major islands, Mindanao and Luzon, was because all transportation at the time was by sea and collectively the Visayan group has more shoreline, which made the agriculturally-rich coastal areas in the largely agricultural global economy much more productive and convenient.

Cebu’s safe harbor with the protection of the island of Mactan and its central location from northern Mindanao to the Visayan islands and the Bicol region in Luzon are decidedly huge advantages.

Cebu became the only transshipment point in the archipelago and eventually the trading capital for goods from China and India on their way to Malaysia and Indonesia.

In the accounts of the Spanish Scribe Pigafetta, the Spanish fleet was led to Cebu and Magellan decided to establish what he hoped would become the lead colonial capital in Cebu, making the so -called Christian monarchy the lead monarchy over all the other neighboring kingdoms.

He was slain by one of the kings or chiefs of the island of Mactan, Lapulapu, which shortened the stay of the Spaniards.

It is important to note that when the Spanish departed to complete the circumnavigation, they sailed to Brunei another trading point, New Guinea, and then sailed through Sumatra on their way to the Malaccan Straits, which indicated the trade network of Cebu. It is obvious therefore that the skill of the Cebuanos was already there before the Spanish came.

After the suppression of the Marcos dictatorship which Cebu never did accept, my governorship came two years after Edsa 1 and gave the Cebuanos the breath of oxygen that revived free enterprise and the potential for optimizing productivity.

My governorship considered the scarce resources and provided M2, the velocity of movement of money, people, goods and services. I prioritized what I called the four pillars for progress.

Power, water, transportation, and communication were laid in Cebu ahead of the rest of the country and the money came from sourcing revenues from thinking out of the box such as the first and only successful municipal bond issue partnering government with the private sector.

The CPVDC, privatization of the Naga power-generation plant, establishment of municipal telephone systems, aggressive and accelerated municipal water systems, cementing of major roads to include even national roads with local funding (unheard of in this country to this day), and organizing and providing task forces for building f farm–to-market barangay roads. This infrastructure provided quality of life that has made Cebu favorite of foreign investors, and, most important of all, zero tolerance to graft! As you can now well see, all this inevitably led to higher employment.

Because of better peace-and-order situation, availability of the improved infrastructure, a higher quality of life, and, more importantly, the supply of skilled, educated, reasonably priced services, people with the right working attitude, Cebu has attracted direct foreign investments. These investors whose propensity to invest with discretionary cash do not affect our local money supply. As the Asian economies grow, foreign investment will accelerate and continue to contribute to our local economy. The mushrooming of high-rise dwelling units, hotels, and BPOs is only the tip of the iceberg. This is the Asian Century.

2.) You have projected an image of being a visionary by the bold steps you took when you led Cebu. You had a lot to do with the transfer of the airport and the building of the second Mandaue-Mactan bridge, the construction of the trans-central highway, the sale of province lots that led to the Ayala Business Center which in turn spawned other malls and business sites, and so forth and so on. What moves do you see from present leaders that you consider similarly visionary?

The most notable would be the South Road Properties of Tomas Osmeña, the dancing provincial inmates of Byron Garcia, and the fast ferries.

What is essential for our future growth, since we sit at the center of north and south America, Australia, Japan, China and Asean, is a destination/transshipment air and sea port not yet existing in the Philippines. A destination port should be able to handle mega container ships and mega tankers that have a maximum of draft 50 feet. An international destination/transshipment airport should have multiple runways and a major cargo handling facility.

In order to support this growth we need a non-stop light coastal highway, passing all towns from Daanbantayan to Santander, which is affordable and doable immediately.

Secondly a rapid transit system along, under, or over the old railway from Danao to Argao. Very few people realize that by cutting travel time around Cebu by half, we will multiply our wealth (again the M2 effect). It will mitigate our water supply problems and cut transportation cost. It will increase the value of real estate and enable affordable housing for the working class.

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3.) What do you see as right or wrong in the way City Hall and Capitol have been run for the past decade?

There may be techniques of governance the present leaders may have missed, or are power rivals just mired in too much politics?

A short, short answer: too much egoism results in obstructionism at the expense of the people.

4.) There’s still an Osmeña in the Senate (Serge) but Osmeñas in Cebu City seem to be running out of leadership material, with its once deep bench reduced to Tomas Osmeña, who’s ailing, his wife, and probably their son. In the province, the Osmeñas have virtually disappeared with only Sonny Osmeña planning a comeback as congressman and your son Mimo eyeing the Talisay City mayor’s seat or the House post.

Is the imminent exit of the Osmeñas still reversible? Lack of young leaders in the clan is a factor but inability of the Osmeñas to unite among themselves may also be a reason.

Cebuanos despaired when the first Osmeña hero on record, Guillermo, was banished from Cebu in 1850 and the Parian church, which he defended, was demolished by the Peninsulares. Little did they know that he left an offspring that would end up being the father of Philippine independence a century later: Sergio Osmena Sr.

Not to worry -- a few dozen fourth-generation Osmeñas from Don Sergio are coming soon.

5.) As founder of Promdi (Probinsiyano Muna Development Initiative) under which you ran for president, what did that campaign instruct about galvanizing the Bisaya vote into a potent national or regional political bloc? Can it ever be done, perhaps by another Cebuano leader?

I certainly hope so. We should learn from the Bicolanos and Ilocanos, that’s why they are so well-represented in the national government. However, as happened in many countries in the world, when central imperial powers declined, regional powers grew. Maybe our target should be more autonomy. “Promdi” can easily be achieved through people power.

6.) You’re a staunch believer in, and passionate advocate for, Cebu. Slogans and catchprases you’ve used (Ceboom, “an island in the Pacific,” Promdi, and, lately, Sugbo Labao Kanatong Tanan) proclaim the strength of Cebu, the Cebuano, and, by extension, the “promdi.”

Do you think the advocacy is still valid nowadays when insularism has given way to primacy of national concerns and globalization?

Precisely because of modern technology, the value of the individual in his ability to communicate with the entire world with the touch of a screen, communities of common interest, language, culture, and beliefs can now organize easily and freely.

Consequently we can now demand what we are deprived of: respect for our language, return of our taxes, and equal representation or the right of self-determination.

7.) Looking back, what do you consider as the more satisfying achievements of your career in public service, as governor and presidential chief economic adviser?

I am proudest at having caused employment of the greatest number of Cebuanos. As governor, I had made our people believe in themselves, happy, and productive.

As presidential chief economic advisor, I oversaw the initiation of the four pillars for progress, so successfully implemented in Cebu and, this time, nationwide.

Published in the Sun.Star Cebu newspaper on February 04, 2012.

Just 10% To Move In AGAD - No More RENTING

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Downplaying hazards to the Philippines call center industry

It is with a bit of amusement I read the hype in the story “Group breaks ground on new office building in IT Park.” The spin part goes like this: Aquino and Monera dismissed fears that a pending US bill to discourage outsourcing will hurt the BPO industry. Monera believes the US companies themselves will lobby against the proposal. Learn what's new in Cebu now, click here Francis Monera is quoted: “Outsourcing is a business strategy practiced also by local companies, whereby you outsource your noncore competencies. It is a strategy to be competitive in the global market and one key element of competitiveness is reducing cost. Outsourcing reduces a lot of cost.” What Mr. Monera conveniently left out is a key part of the proposed bill HR 3596 if passed in its present form: The bill would create a "bad actor" list of U .S. companies that make a practice of sending U. S. jobs overseas. It would require a publicly available list, kept by the Department of Labor, of all employers that relocated entirely or a significant portion of their call center or customer service work overseas. These companies would be ineligible for Federal grants or guaranteed loans. Preference will be given to U. S. employers that do not appear on the list for awarding civilian or defense-related contracts. Employers that relocate a call center will remain on the list for up to 5 years after each instance of relocating a call center. The U.S. congressmen who wrote the bill understand employers’ need to “be competitive in the global market”. The question for employers, will it be worth paying cheaper wages in the Philippines and give up big US Federal contracts to your business foes for five years? I would wager no, it won’t be worth it to remain in the Philippines, in one year you could be out of business. Tony Padua Lapu Lapu City

More planeloads of tourists seen with removal of CCT

THURSDAY, 02 FEBRUARY 2012 21:44 RECTO MERCENE AND MIA GONZALEZ / REPORTERS

DIRECT flights between Manila and Europe would immediately resume as soon as the government removes the common carriers tax (CCT). And if that happens, a flood of tourists is sure to follow and attain the government’s goal of hosting10 million tourists by 2016.

This, according to the Airline Operators Council (AOC), in response to a bill by Sen. Ralph Recto.

Recto proposed last week the passage of a measure that would scrap the CCT on international carriers to boost tourist arrivals by 70,000 and increase incoming and outgoing passenger traffic by 230,000 in the first year of implementation.

He acknowledged that scrapping of the CCT would lead to P1.875 billion in revenue losses per year, but said the expected revenues to be generated in the tourism sector would far outweigh the losses.

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“If we remove it [CCT], they [tourists] will come. And it would be truly fun to come to the Philippines,” Recto, chairman of the Senate Ways and Means Committee, said.

Recto urged President Aquino to certify as urgent his bill to speed up its congressional approval.

Malacañang promptly gave its support, as long as Congress can find ways to compensate for the revenue loss.

“We support the lifting of the common carriers tax,” Secretary Ramon Carandang of the Presidential Communications Development and Strategic Planning Office (PCDSPO) said in a phone interview.

Carandang said Malacañang shared the position of the Department of Finance (DOF), which told Congress it did not object to the proposed measure, “but they are asking that Congress find a way to make up for the potential foregone revenues.”

Under the National Internal Revenue Code, international air carriers are slapped a 5.5-percent tax on revenues—3-percent CCT on their gross receipts and a 2.5-percent tax on gross Philippine Billings (GPB) on all cargo and passenger revenues originating from the Philippines. The Philippines is reportedly the only country that imposes such taxes.

There are other pending measures in Congress seeking to remove the CCT and the gross Philippine billings tax.

Air France (AF)-KLM, which has been in the Philippines for 60 years, was the last airline to cancel its direct flight last year from Manila because of the CCT.

The airlines that no longer fly to Manila include British Airways, Lufthansa (Germany), Alitalia (Italy), Swiss International Airlines, and Air France, which has code-sharing arrangement with KLM.

AF-KLM currently flies the Manila-Taipei-Manila route in order not to cut the link with Europe, according to Ma. Lourdes San Juan, its assistant station manager.

When asked whether they will resume direct flights between Amsterdam and Manila if the CCT is removed, San Juan said: “Yes, definitely. We did not ask to remove the CCT. What should be taxed is the fare actually paid for [by passengers or actual sales] and not the [higher gross] fare as reflected on the ticket.”

The airline companies have complained with the Bureau of Internal Revenue that the CCT was based on the higher fare reflected on the ticket.

Ed Monreal, AOC president, said many European airlines have ceased operating in the Philippines because of the CCT. This issue is on top of the high cost of gasoline.

“Overhead expenses are much higher in the Philippines than elsewhere, that’s why many European airlines have stopped coming here,” Monreal said.

However, he said those that have left the Philippines could be enticed to return if they found that operating costs have gone down.

The taxes, together with increasing competition from heavily subsidized Middle Eastern competitors, have forced other European airlines out of the Philippine market over the last decade.

Civil Aeronautics Board (CAB) Executive Director Carmelo Arcilla said the country need direct flights from Europe to support the tourism sector.

Arcilla said tourist arrivals from Europe have not grown significantly over the past decade, settling at around 300,000, or 10 percent of the total, at the end of 2010.

He said increased air services to Europe would help the government attain its goal of doubling tourist arrivals to 10 million by the end of President Aquino’s term in 2016.

Carandang quoted Finance Secretary Cesar Purisima as having said the government “can live with the removal of the carriers tax, but that they [DOF] would like to work with Congress to find a way that the potential impact on revenues can be mitigated.”

“There’s a whole menu of possibilities on how that can be compensated for…. Senator Recto is coming up with some proposals. There’s a revenue side; there’s an expenditure side, so there are many ways to skin the cat,” Carandang said.

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IN PHOTO -- IT'S LIKE THIS Tourism Secretary Ramon Jimenez Jr. fi nd avid listeners in (from left) Rhicke Jennings of the American Chamber of Commerce of the Philipines; John Forbes of the Joint Foreign Chambers of Commerce and Industry; and Jeffrey Woodruff, executive director of the ACCP, before the start of the public hearing by the Senate Committee on Ways and Means on the common carriers tax (CCT), which had prompted various airlines to cancel their direct flights to the Philippines. --ROY DOMINGO