Biz group says Bukidnon needs updated tax codes to draw investments

MALAYBALAY CITY (MindaNews/01 May) – Bukidnon needs to reform its tax codes if it wants to attract more investors to the province, a business chamber official said.

“At the start of the day, you are supposed to put up signage saying Bukidnon is ready for investments, but you cannot (because of obsolete tax laws and other policies),” Roderico Bioco, president of the Bukidnon Kaamulan Chamber of Commerce and Industry Inc. (BKCCII) said.

He said promoting investments is good but should be backed by a correct policy environment.

“If investors (check on government’s) due diligence; we can only get very brave investors, but they are not as aggressive,” he said, adding Bukidnon is not the only investment destination.

Bioco spoke at the 19th Strictly Business News Conference at the Department of Trade and Industry-Bukidnon office on April 23.

The chamber announced the holding of a forum mapping out Bukidnon’s top commodities aside from rice, corn, and sugar. He said the province also produces rubber, abaca, cacao, cassava, oil palm, and banana.

He said it is important to lay out the value chain of these commodities to draw out an investment plan to support and promote them to possible investors.

But he said no investment promotion will work without a favorable business environment.

Bioco cited that the tax codes of Malaybalay and Valencia City needs to be updated.

Malaybalay, which became a city in 1998, is still using a tax code based on Presidential Decree 236, an earlier version of the Local Government Code of 1991, he said.

He said such law computes taxes based on gross sales. “But gross sales/receipts may include Value-added tax (VAT). You cannot tax a tax,” he said, adding PD 236 was imposed when there was no VAT yet.

He cited the case of the trucking industry, where he is one of the players, which is also excluded from the tax computation based on gross sales. “Only the provincial government can tax on trucking. Even with that, they can only tax per unit, not on gross receipts.” - From mindanews.com