The Cebu City Treasurer's Office (CTO) has put forward a significant proposal aimed at providing financial respite to local businesses still recovering from the onslaught of Typhoon Tino. Instead of an outright cancellation of penalties, the office is recommending a form of tax relief that affected establishments can apply when computing their business taxes for the year 2026.
Recommendation Follows City Council Resolution
This move by the CTO is a direct response to a resolution passed by the Cebu City Council. During its regular session on November 11, 2025, the council approved a measure urging Mayor Nestor Archival to implement a waiver on tax penalties for enterprises operating in areas devastated by the recent typhoon. The council's action highlighted the need for government support for the struggling business sector.
In a letter dated November 27, 2025, addressed to the City Council, the Treasurer's Office outlined its position. The CTO stated that businesses located in barangays declared as disaster areas could be considered to have reduced or zero income for the period spanning November 4 to December 31, 2025. This acknowledgment of lost revenue forms the basis for the proposed tax relief, recognizing the severe economic imbalance caused by the calamity.
Legal Limitations on Waiving Penalties
However, City Treasurer Emma Villarente provided a crucial clarification that tempers expectations. She emphasized that the CTO does not have the unilateral authority to waive penalties, surcharges, interest, or other fees related to business permit renewal and processing. Such action, she explained, requires a duly approved city ordinance as mandated by the Local Government Code (LGC).
Villarente cited Section 192 of the LGC and Article 282 of its Implementing Rules and Regulations, which clearly state that any form of tax relief must be granted through legislation. "Without an ordinance for that specific purpose, our hands are tied regarding the waiver of penalties," the explanation implied, underscoring the rule of law in fiscal matters.
Balancing Compassion with Fairness
While expressing deep sympathy for the business owners grappling with Typhoon Tino's aftermath, the CTO also presented a rationale for its cautious approach. The office indicated that granting a broad, blanket waiver on all penalties and surcharges might create a sense of inequity. Such a move could be perceived as unfair to other taxpayers who have diligently and faithfully fulfilled their obligations and settled their dues on time, despite facing their own challenges.
The CTO's detailed explanation serves as its official response to the City Council's November 11 resolution. It charts a middle path: offering a practical form of relief through adjusted income declarations for the affected period, while adhering to the legal framework that governs local taxation. The proposal now sets the stage for further legislative action if the City Council decides to pursue a full penalty waiver through an ordinance.
