Issue of May 14, 2017
Mt. Province

66th Courier Anniversary Issue
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Treasurer’s Office asks JHMC list of CJH concessionaries
by Rimaliza A. Opiña

The number of concessionaires at Camp John Hay special economic zone is increasing, but the city government’s income from regulatory fees has yet to be determined by the City Treasurer’s Office.

City Treasurer Alex Cabarrubias recently wrote the John Hay Management Corporation (JHMC)to submit the list of concessionaires or locators at the CJH special economic zone, which will used by CTO to come up with a realistic assessment of how much income the city should be getting from business taxes within the SEZ.

The letter is apart from the suggestion of Councilor Leandro Yangot Jr. for the CTO to also check on trade fairs of bazaars being periodically done at CJH. He said like the concessions, the LGU also has to have a share from the income earned from the trade fairs. 

Cabarrubias said some concessionaires registered with the SEZ pay their taxes to the JHMC, while others pay at City Hall. The LGU, also, is not informed that trade fairs are being conducted at CJH.

At the city council’s session last May 8, City Legal Office Officer-in-Charge Melchor Carlos Rabanes said that apart from the shares of the city from the lease of Camp John Hay, concessionaires must pay business and other regulatory fees and taxes at City Hall.

He cited a 2010 decision of a local court that dismissed the BCDA and JHMC’s petition asking the court to prevent the LGU Baguio from collecting local taxes. The decision, penned by then Regional Trial Court Branch 6 Presiding Judge Cleto Villacorta III, said while Republic Acts 9400 and 9399 give incentives to locators at SEZs, they are not entirely immune from paying local taxes.

“RA 9400 and RA 9399 are not definite in granting exemption to BCDA/JHMC from local regulation. Both these statutes merely refer to tax and duty incentives and nothing more. They do not expressly provide that BCDA/JHMC are exempted frombusiness permits.”

The court added that BCDA-JHMC should prove that Congress intended to exempt them from local regulations.

RA 9400 is the law that created the BCDA while RA 9399 is the law that granted amnesty on certain tax duties and liabilities incurred by enterprises at SEZs.

Using the court’s decision, Rabanes said the CTO should assert the LGU’s right to exact business and other local taxes from concessionaires and locators at CJHSEZ.

He said the RTC decision has been rendered final after the BCDA/JHMC did not contest or appeal the decision.

“We have to assert our right. It’s just a matter of enforcing the (Tax) Ordinance, through the City Treasurer’s Office,” Rabanes said.

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Baguio Country Club
Department of Tourism – CAR
University of Baguio
Venus Parkview Hotel

Congressman Mark O. Go
Department of Health – CAR
Kings College of the Philippines
Lepanto Consolidated Mining Company
Mayor Mauricio G. Domogan
Narda’s Handwoven Arts & Crafts Inc.
Philex Mining Corporation
Pines City Colleges
Province of Benguet
Sangguniang Panlungsod
SM City Baguio
Social Security System

Assumption Medical Diagnostic Center
Baguio Center Mall
Baguio Central University
Baguio Heart and Lung Diagnostic Center Inc.
Baguio Memorial Chapels Incorporated
Baguio Water District
Bureau of Fisheries and Aquatic Resources – CAR
C & Triple A Supermart
Congressman Ronald M. Cosalan
Curamed Pharmacy
Data Center College of the Philippines of Baguio City Inc.
Department of Agriculture – CAR
Department of Environment and Natural Resources – CAR
Department of Trade and Industry – CAR
Department of Transportation – CAR
Easter College Incorporated
Fabulo Beauty and Image Salon
Fast East Pacific Commercial
Filipino–Japanese Friendship Association of Northern Luzon, Inc.
GMS Technology
Immigration Network Services, Inc.
La Funeraria Paz, Inc.
Mayor Romeo K. Salda
MMS Development Training Center Corporation
Mother Earth Deli Basket
National Economic & Development Authority–CAR
Overseas Workers Welfare Administration
Philippine Science High School – CARC
R.A. Gapuz Review Center
Regional Tripartite Wages and Productivity Board – CAR
Solibao – Ganza Restaurant
Technical Education and Skills Development Authority

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