TAX PAYMENT. The receipts showing the tax payment of contractors working on four flood mitigation projects in Iloilo City. The city government imposed the necessary tax obligations on St. Timothy Construction Corporation and Alpha and Omega General Contractor & Development Corporation after it was discovered that they had no valid Mayor's Permit. (Photocourtesy of Iloilo City government)
ILOILO CITY – The local government here has collected more than PHP3.1 million in taxes from four flood mitigation projects implemented by two contractors recently named by President Ferdinand R. Marcos Jr. as having projects across regions in the country.
"This follows my directive to the City Treasurer's Office (CTO) to review over 90 ongoing projects of the Iloilo City District Engineering Office (ICDEO) funded under the General Appropriations Fund from 2022 to 2025," Iloilo City Mayor Raisa Treñas said in a statement on Wednesday.
During the review, it was revealed that St. Timothy Construction Corporation and Alpha and Omega General Contractor & Development Corporation had no valid Mayor's Permit.
Treñas directed the imposition of the necessary tax obligations and the requirement of full compliance with the city's regulations.
Based on the receipts, the St. Timothy Construction Corp. paid PHP2.33 million for three projects on Aug. 28, including the construction of flood mitigation structures in Lapuz Section 1, flood mitigation structures in Lapuz Section 2 and flood mitigation structures in Lapuz– waterways rehabilitation and coastal protection, Section 1.
The Alpha and Omega General Contractor & Development Corporation paid PHP841,202.14 for the construction of flood mitigation structures (Iloilo Flood Mitigation Project Section 2), also on Aug. 28.
"The CTO continues to conduct on-site monitoring and inspections of all ongoing infrastructure projects in Iloilo City to ensure that contractors secure the proper Business/Mayor's Permits and strictly adhere to the law," Treñas said.
City Treasurer Jinny Hermano said the rule of permitting is basic, such that when they do business in the jurisdiction of a local government, they need to have the authority to conduct business.
"If they have a permit in their principal office and they conduct business here, they should pay their contractor's tax. Their payment to the contractor's tax is actually their permit here in the city government of Iloilo," he said in a separate interview.
For those with only one project, they can pay the one-time contractor's permit fee.
The contractor's tax is based on the contract price. If they do not have an office in Iloilo City, the tax is computed based on 70 percent of their contract price.
But if continuous, like two projects, they are advised to secure a regular permit.
He said they stop operating in the city if they do not pay their taxes. (PNA)
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