MAYOR Benjamin Lim is inclined to veto the proposed ordinance granting tax exemption to private educational institutions, which has passed second reading at the Sangguniang Panlungsod.

Lim said the idea is “a bad precedent” as similar institutions may ask for the same exemption in the future.

“I am inclined to veto it because it will affect the revenue collection of our city unnecessarily. While it is true that some cities grant exemption to educational institutions in their area, these are more of an exception than a rule. They allow this to lure school operators to put up similar schools in their cities. But this rule is not perpetual. It is only for a certain period of time,” Lim explained.

The mayor urged the ordinance proponent, Councilor Alfie Fernandez, and the SP education committee chairman, Chito Samson, to reconsider the proposal.

Lim pointed out that only two universities are asking for an exemption, and not among them is the University of Pangasinan which paid P2.5 million in business tax in the last taxable year.

Lim also stressed that only non-stock and non-profit educational institutions are exempted from paying business tax under the law.

Councilors Brian Lim and Red Erfe Mejia, both in the minority, branded its passage as a “railroaded” one.

Both claim that no committee hearings were held on the proposal or that they were not called to attend had there been any.

Councilor Lim also pointed out that Samson should have inhibited himself from conducting the committee hearings if there was any since University of Luzon is run by his family.

For his part, City Administrator Vladimir Mata said the city will be losing P10 to 15 million in business taxed if the ordinance is approved and implemented.

“Let us help each other. Everybody has to share for the government to become more efficient in delivering basic services. Makisama kayo. Kung mandadaya kayo huwag naman yung garapal. Kung puede kang tumawad, tumawad ka, pero huwag mong lilibrehin,” said Mayor Lim.

He threatened that, “if worse comes to worst, we will look into the books of account of these schools. What we are trying to do is a persuasive way to get as much as we can pero sa kanila naman they will try to resist to give as much as they can but to say that they should not pay is comic.” (CIO – Joseph C.Bacani)

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