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Davao council unlikely to reverse new business tax rates, but considering relief measures for small businesses

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MARKET VENDOR associations are among the groups claiming to have been adversely affected by the new business tax rates in Davao City. — BW FILE PHOTO

THE DAVAO City council has vowed to come up next month with a solution to the complaints of local traders on the higher business tax rates approved in 2017 and took effect this year. Councilor Danilo C. Dayanghirang, head of the finance committee, said they are now looking into measures that could cushion the increase. “They feel they are burdened by the increase; we will look into it and come up with a win-win solution,” said Mr. Dayanghirang, noting that they will particularly consider the impact on small businesses. He added, however, that a reduction in rates is unlikely because “we just approved our tax reform last year.” Mr. Dayanghirang also explained that the increase is minimal considering that the last change in rates was 15 years ago. Under the law, local governments can adjust tax rates every five years. Under the new rates, businesses with an annual gross earnings of P200,000 to P250,000 will pay P3,226.47 in businesses taxes, while those with between of P1 million to P2 million are charged P9,160.31. Among the groups claiming to have been adversely affected are public utility vehicle operators and market vendor associations. — Carmelito Q. Francisco





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