ILOILO City – Branches of big establishments and corporations should pay their taxes to their host local government units (LGUs), according to Iloilo City councilor Jeffrey P. Ganzon.
Ganzon authored a resolution during Tuesday’s regular session of the SangguniangPanlunsod requesting Congress to amend the national internal revenue code and require large business taxpayers and establishments to pay taxes to their host LGUs.
Most of the big taxpayers have main offices in Metro Manila and Cebu. They are paying millions of pesos in taxes in their main offices but not in places where they are doing business, thereby depriving their host LGU of the much needed revenues.
Ganzon said this particular practice is economically unfair and unjust to their host LGU. It is very hard to audit and keep track of the correct income of these establishments and corporations to collect the proper taxes due, he said.
As of the present, taxes paid by large businesses include value-added tax, excise tax, income tax, withholding tax, percentage tax and documentary stamps.
Iloilo City is the first to act and seek amendment in Congress regarding the business taxes of big businesses with branches in the host LGUs, Ganzon said.
Ganzon admitted that his proposal may not be acted upon by Congress immediately but the national government is in preparation for a shift to the federal system of government by 2022. (PNA)