LAWYER Gonzalo Duque, president of Lyceum-Northwestern University (LNU), said the school is now determined to take legal action after Mayor Benjamin Lim indicated he would let the court decide whether private schools in Dagupan are exempted or not from paying business taxes.

At the same time, Duque belied reports that the schools are declaring “war” on city hall because all they are seeking is what is due them if there is no law that governs their payment of business taxes.

“No, we are not threatening the city government. We are only seeking vindication for the unauthorized collection of business taxes from us since 2001,” said Duque in response to Lim’s statement before the ‘Media in Action’ forum of the Pangasinan Press Club, which Duque also heads.

Duque sent a demand letter two weeks ago to the city government seeking refund of business taxes paid by LNU since 2001, which was five years before the enactment of Ordinance No. 1855 or the Dagupan City Tax Code.

The mayor maintains that business taxes on private schools are subject to business taxes except those which are registered as non-stock and non-profit.

Duque, on the other hand, underscores that former Councilor Michael Fernandez, author of Ordinance No. 1855 and chair of the committee on ways and means when the ordinance was drafted and approved, himself said that the city council did not invite representatives of the private schools during the public discussions because they were not contemplated to be covered.

“This means that there is no local ordinance that covered the imposition of business tax to the private schools,” said Duque.

He said the claim of one Sebastian Garcia, an official in the city treasurer’s office, that they are applying the Local Government Code in imposing business tax to his school is questionable because an ordinance should still be enacted for the purpose.

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