Tanauan vice mayor says enactment of tax incentive code beneficial to towns, cities

TACLOBAN CITY – The creation or enactment of a tax incentive code is beneficial to a town or city, according to Tanauan Vice-Mayor Catalina Kapunan.

Enacting a tax incentive code was among the strategies that Governor Jericho Petilla is campaigning among local government units to entice more investors to come into the province and encourage local businessmen to put up their own businesses in their locality.

In Tanauan, Kapunan said that they had already enacted a tax incentive code which they hope could provide economic and business growth in their town.

At present, two big companies are operating in Tanauan, the Pepsi Cola Bottlers and the New Leyte Edible Oil Manufacturing Company.

With the enactment of the tax incentive code, Kapunan said that they are optimistic that it will result to more businessmen coming in to put an investment in their town.

“Having tax incentive does not only benefit businessmen but it also benefits the municipality,” said Kapunan.

“We know for a fact that the government gets its fund for project implementation from the taxes that are being paid by the taxpaying public like the business sector, that is why we also need the business sector by enacting law like this so that they can faithfully pay their taxes,” she added.

Kapunan added that the more business establishment are located in one area such as in their town, this will not only mean bigger tax collection but will also mean more job generation.

Kapunan, when asked to comment to the bill (Senate Bill 42) sponsored by Senator Tito Sotto III that aims to amend the Local Government Code of 1991 specifically section 15, which is about Sales Tax Payment Allocation, said that the bill of Sotto should be supported by all especially by local government units where there are manufacturing businesses but the principal place of business is located in bigger cities.

“If this law is approved, which I hope will be, local government units will have bigger income and I think some of municipalities will not be internal revenue allotment dependent, just like big cities in the Metro Manila,” Kapunan said.

Under the proposed bill of Sotto, it intends to change the set up of sale tax payment allocation instead of the principal business receiving the bigger tax share, the actual place of business should be the one receiving the bigger share.