Heeding the plea of stakeholders in the tourism industry, Senator Nancy Binay backed calls to defer payment of local taxes this year, citing “massive losses” caused by the Covid-19 pandemic.
“Hopefully, the appeal of our tourism establishments for tax deferment will be granted,” Binay said.
She pointed out that among the hardest hit by the pandemic is the tourism industry which is why they should be given a small leeway.
The senator recalled that the Tourism Congress of the Philippines (TCP) recently sent a letter to Department of Interior and Local Government Sec. Eduardo Año appealing for help to get local government units to defer the payment of business taxes.
The TCP earlier received reports from its members that various LGUs have been issuing assessment fees for business taxes, with some assessments based on 2019 income.
Sen. Binay suggested tourism establishments should not be expected to be able to pay their taxes based on un-adjusted assessments, given that the sector had ground to a halt following the first quarter of 2020 after travel restrictions were imposed.
The country’s tourism receipts fell by 81 percent to PHP81.05 billion from January to November 2020, from PHP437.9 billion in the same period in 2019.
“Naiintindihan naman natin ang side ng mga LGUs. After all, taxes are the lifeblood of public services. But these establishments are also part of their constituency and they provide jobs for our people. Baka tuluyan na silang magsara kung pipiliting magbayad nang hindi naman talaga kaya,” Sen. Binay said.
The lawmaker likewise urged the government, particularly the DILG and LGUs to engage in dialogue with tourism stakeholders to determine a solution to the latter’s request for concessions seen to aid the industry’s recovery.
He recalled tourism stakeholders had earlier recommended the waiving of corporate and individual taxes for 2020 for accredited tourism stakeholders and the waiving of payments for licenses and permits for 2020 and 2021.
“Sana’y magkaroon ng masinsinang paguusap para makahanap ng compromise, recognizing the need for both the national and local governments to raise funds for their own programs, and the survival of the industry,” Binay said.
Image credits: DOST-STII