City
Council authorizes mayor
to accept SM’s advance tax payment
CEBU City - The City Council has authorized
Mayor Tomas Osmeña to enter into an agreement with
the SM Prime Holdings, Inc. for the advance payment of P50
million to be deducted from the company’s future tax
liabilities with the city.
In a measure authored by Councilors Jose Daluz
III and Augustus Pe Jr., the August body agreed to accept
SM’s offer to advance its real property, amusement and
business tax payments “to be credited for a period of
one year” starting January this year.
The payment will be used by Cebu City to finance
vital government and infrastructure projects, “but not
to exceed the foregoing amount.”
The SM Prime Holdings Inc., the owner and
operator of SM City-Cebu, asked the City Hall to relocate
the informal settlers living in the five streets at the North
Reclamation Area (NRAS), and to light up the streets in the
area.
The amount will also be spent to fabricate
and install traffic road signs in the five streets and to
construct the center islands in the main roads and rehabilitate
the drainage system, including the Mahiga Creek.
“Due to the budgetary constraints of
the city of Cebu, various vital government and infrastructure
projects are presently set aside until adequate funding is
sourced either internally or through assistance form the National
Government, Inc. has offered to advance its real property,
amusement, and business ax payments,” they added.
As stated in the draft MOA, the SM Prime Holdings
will turn over the P50 million in two installments.
The first P25 million will be paid within
30 days upon submission of the city of the approved resolution.
The second half will be paid 30 days later.
The agreement is deemed terminated upon complete
liquidation of the full amount by the city.
In July 2006, both parties had the same arrangement
where SM Prime Holdings advanced the City Government P53.9
million in taxes, which was supposed to be used for beautification
projects including the improvement of roads, and removal of
garbage and vendors form the NRA. (PNA)
|