Looming tax revolt besets Panglao town

Panglao, still reeling from tax loss estimated at P700-thousand a month because of a still unresolved court case over the Enviromental User’s Fee (EUF) implementing guidelines, is again confronted with a more serious problem over the rising hostility by tax payers with respect to the implementation of the “Revenue Code of the Municipality of Panglao for 2011” under the Enchanced Tax Revenue Assessment and Collection System (E-TRACS)

The Chronicle learned that tax payers cried foul after the much anticipated computerized tax system turned out to be a “bagbiter”, computer jargon for a program that has shortcomings even as some businessmen has called for depositing their tax payments in the courts in protest of the allegedly unfair tax assessments.

The LGU of Panglao is now implementing a new type of tax collection system known as Enhanced Tax Revenue Assessment and Collection System (E-TRACS) – a system that automates the assessment and collection of taxes.

Sources who refused to be identified told the Chronicle that the agreed formula for the presumptive income level does not appear in the assessment printouts depriving business owners the summary of  the manner their tax payments were computed.

The presumptive income level (PIL) as defined by the Panglao Municipal Revenue Code is the approximate gross receipt of each business classification that will eventually determine the Business Tax level to be paid.

The PIL is prepared by the Local Finance Committee with copies to be furnished to all businessmen.

A resort owner raised a howl after his presumptive gross income was computed at P55M and was assessed P1.2M.

Another resort owner complained that the computer program “wrongly split out the components of each single business and incorrectly considered each of the components a separate business resulting in a separate set of requirements and permits”.

Stakeholders deplored the “rush” in which the tax code was implemented under the E-TRACS without the benefit of a dry run. The much delayed approval of the Panglao Revenue Code generated controversy after it was found out that the approved ordinance was allegedely submitted late by the SB secretary for approval by the Sangguniang Panlalawigan.

The LGU of Panglao was among several municipalities in Bohol using the E-TRACS system of tax assessment and collection under a grant funded program from AusAid.

Municipal Ordinance No.03 series of 2011 sponsored by Panglao Kagawad Noel E. Hormachuelos was enacted on February 28, 2011 but was approved for implementation by the Provincial SP December, 2011. (CMV)