Lone Tax Opposition Ex-Councilor Gamboa Speaks Anew (1)

Former Councilor Wilson Gamboa, Jr. yesterday found the Sangguniang Panlungsod passage of the Bacolod Revenue Code as “absurd and funny” but which was eventually signed into an ordinance, considering that said Code was claimed to reverse “regressiveness” of old tax schemes.

The former Bacolod legislator was once the lone opposition to a similar ordinance proposed in 2008 during his incumbency before it was legally overruled by the Department of Justice (DOJ) then headed by Secretary Raul Gonzalez and the SP quietly “swept the proposed ordinance under the rug”

The real “regression” here, the former Councilor said, “Is passing controversial tax laws while the rest of the world are offering tax cuts, tax holidays and bailouts to assuage the impact of the crisis.

What is even funnier was for the City to say that the Revenue Code was pushed for adoption “NOT TO INCREASE TAXES AND REVENUES” but in compliance with R.A. 7160 (1991 Local Government Code) as stated by SP Committee Chair on Finance Al Victor Espino.

In the end, however, the same press release admitted through a follow up statement that “the City of Bacolod will experience IRA budget cuts of P80 million and with the passage of the new tax Code, it will generate P50 to P70 million for the City.

“Why then is Bacolod City the only City that passed such a tax code now as a sheer `stop gap measure’ against an IRA budget cut?” Gamboa asked.

Basic economics reads taxation as a development strategy, must not be a burden to a people and definitely not a stop gap measure.

The Ateneo Graduate School of Business graduate, Gamboa stressed, “I am not against tax increases but the Bacolod business community demands clear-cut strategy grounded in study and research.”

What the City of Bacolod must do instead, he explained, is first, to seriously conduct prior research study on the impact of tax hikes among industry players of the local economy and most especially the micro and small industry players.

“Then, the SP must task itself to review all revenue ordinances and evaluate which among these are properly implemented before passing a tax increase,” he also explained.
Finally, Gamboa said, “The City must conduct a series of intensified campaign and extensive cross-section dialogues with all sectors of business, from micro to large businesses. No stone must be left untouched.”

(Tomorrow: Taxation must benefit labor more than any other factors of production)*