THE Sangguniang Panlungsod (SP) of Dagupan has passed on second reading a proposed ordinance exempting all private schools, colleges and universities in the city duly accredited by the Department of Education and the Commission on Higher Education from payment of business tax.

The proposed ordinance, authored by Councilor Alipio Serafin Fernandez and co-authored by seven other councilors belonging to the majority, recognizes the important role of private educational institutions to the growth of Dagupan as the educational and trading center of the north.

Fernandez said the private schools are considered as Dagupan’s “sunshine industry”, which drives the growth of ancillary businesses and other investments.

Under the Local Government Code, it would take a two-third vote of all the members to pass such an ordinance which grants exemption certain sectors of the economy in the city.

Councilor Jeslito Seen, chairman on the committee on appropriations, said there were more than nine councilors who voted for the measure on second reading.

When approved on third and final reading next week, the ordinance shall take effect next year and will be effective for just 12 months.

APSCU SUPPORT

The proposed measure is supported by the 33-member Association of Private Schools, Colleges and Universities (APSCU) in Dagupan City, pointing out that this is in accord with Article XIV, Section 4 (3) of the 1987 Constitution.

The provision states that “All revenues and assets of non-stock, non-profit educational institutions used actually, directly, and exclusively for educational purposes shall be exempt from taxes and duties and that even proprietary educational institutions, including those cooperatively owned, may likewise be entitled to such exemptions.”

APSCU also maintained that it is within the conferred powers of the local sanggunian to grant tax exemptions under Section 192 of the Local Government Code, which states that “Local government units may, through ordinances duly approve, grant tax exemptions, incentives or reliefs under such terms and conditions.”

APSCU said the grant of exemption will strengthen private schools, colleges and universities by providing them with increased basic assistance which will allow them to assume an even larger share of responsibility in educating the youth.

Heads of the private schools trooped to the SP session hall on Monday when the legislative body tackled Draft Ordinance No. 0-455.

Among the resource persons present when the measure was being deliberated were Atty. Gonzalo T. Duque, president of Lyceum-Northwestern University; Dr. Mac Arthur Samson, president of University of Luzon (UL); and Dr. Aurora Samson-Reyna, UL vice president.

Samson-Reyna said private schools are “the geese that lay the golden eggs for the city”.—LM

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