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activities within the city. A number of establishments however, escape detection since there
is little incentive for the collectors to go after those who do not obtain the Mayors permit
and the delinquent owners who pay late. Thus the timely tax enforcement and collection is
largely dependent on voluntary compliance by business owners. Again there is little coordination with the Brangays to enhance coverage or enforcement.
There is a one-time 25 % surcharge on late payment, which is comparatively low
since a safe investment can easily yield 12 percent savings interests to 18 percent lending
interests annually. Although the Code provides for quarterly payment of taxes and
delinquency letters are sent after each quarter, there is lack of incentive as no strict
enforcement measures are applied to encourage the businesses to pay promptly.
Regressive Nature of Tax Rates
Tax rates are progressive up to 50,000 pesos, after which the tax is regressive. A
regressive rate st...
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This document was uploaded on 01/27/2014.
- Winter '13