Colleges to sue city hall for “illegal taxation”
MEMBERS of the Association of Private Schools, Colleges and Universities (APSCU) in Dagupan are filing this week a legal complaint against the city government for “illegal taxation.”
Speaking for APSCU, University of Luzon President MacArthur Samson said private schools in Dagupan are already paying corporate taxes, mayor’s permit and other fees and maintained that are under the law, they should be exempt from business tax.
“Lahat kami nagbabayad. Double taxation nga yong ginagawa nila at illegal… Dinaig nila ang BIR (Bureau of Internal Revenue), based sa gross income ang sinisingil nila,” Samson said, referring to the city’s imposition of business tax computed as one percent of gross income multiplied by 75 percent.
Samson also clarified that that the APSCU members in the city are not seeking a new tax exemption per se for private schools but the enforement of the exemption that is already theirs under existing laws.
He cited that the revised city revenue code of 2007 does not include or mention private schools as among business establishments to be taxed.
“Kung wala ibig sabihin we are tax exempt,” Samson said during the KBP Forum last week.
PRECEDENT
Samson, who heads the provincial and regional associations of private schools, also stressed that their battle with the city hall is being closely watched by other colleges since it could set a bad precedent for private schools in other local government units.
“Hindi lang laban ito ng private schools sa Dagupan but in the whole country… Binabantayan ng lahat ito ngayon. Sabi nila, pag natalo ka ryan isusunod kami,” he said.
On the other hand, Dagupan Mayor Benjamin Lim, in another media forum, asserted that the granting of an exemption from business tax payment to private schools will set a precedent for other businesses.
He asserted that nothing would stop other sectors for demanding for the same exemption by invoking their contributions to the economy. (With reports from DOS/PIA Pangasinan)
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