DAVAO CITY, Philippines – The Davao City Council is pushing for an ordinance to provide tax relief and incentives for business establishments in the city whose operations were disrupted due to the lockdown to address the coronavirus disease (COVID-19).
This was pushed by Councilor Danilo Dayanghirang, who chairs the council’s committee on finance, following a hearing with various department heads of the local government and with Davao City Chamber of Commerce and Industries President John Tria.
In his resolution on filing this proposed ordinance last Tuesday, Dayanghirang said consideration must be given to business establishments that were mandated to temporarily stop their operations because of the enhanced community quarantine.
The ordinance also proposes a reduction of garbage fee collection for calendar year 2021.
The deduction from gross sales shall be applicable for the 2021 renewal of business permits, and includes rental fees waived by lessors or building owners during the quarantine as most businesses were closed.
Contributions, donations and providing facilities in support of the city government’s response to the pandemic will be deducted also from the city government’s collection from these establishments.
“The gross sales/receipts less the aforementioned deductible amount shall be the basis for the computation of business taxes for the calendar year 2021,” the proposed ordinance states.
Also, included in the proposed ordinance is the waiver of rental fees under and the suspension of the implementation of the final tranche of the increase in real property tax payment. (davaotoday.com)