Iloilo City Enforces Tax Collection on Flood Mitigation Projects
Iloilo City has successfully collected over P3.1 million in taxes from flood mitigation projects implemented by contractors recently identified by President Ferdinand R. Marcos Jr. as operating in multiple regions. This move highlights the city’s commitment to enforcing tax compliance among contractors working on critical infrastructure.
Mayor Raisa Treñas revealed that the City Treasurer’s Office (CTO) was instructed to review more than 90 ongoing projects under the Iloilo City District Engineering Office (ICDEO), funded through the General Appropriations Fund from 2022 to 2025. The tax collection from flood mitigation projects was a direct outcome of this thorough review.
Contractors Without Valid Permits Prompt Tax Enforcement
During the audit, it was discovered that St. Timothy Construction Corporation and Alpha and Omega General Contractor & Development Corporation lacked valid Mayor’s Permits. As a result, Mayor Treñas ordered the immediate imposition of tax obligations and mandated full compliance with local government regulations.
St. Timothy Construction Corporation paid a total of P2.33 million on August 28 for three flood mitigation projects. These include flood control structures in Lapuz Section 1 and Section 2, as well as waterways rehabilitation and coastal protection in Lapuz Section 1.
Meanwhile, Alpha and Omega General Contractor & Development Corporation settled P841,202.14 for their work on the Iloilo Flood Mitigation Project Section 2, also on August 28.
Continuous Monitoring Ensures Compliance
Mayor Treñas emphasized that the City Treasurer’s Office continues to perform on-site inspections and monitor all infrastructure projects in Iloilo City. This ensures that contractors obtain the necessary Business or Mayor’s Permits and adhere strictly to local laws.
City Treasurer Jinny Hermano explained that securing a permit is a basic requirement for contractors operating within the city. “If they have a permit in their principal office and they conduct business here, they should pay their contractor’s tax. Their payment to the contractor’s tax is actually their permit here in the city government of Iloilo,” he said.
Contractor’s Tax System and Regulations
The contractor’s tax is calculated based on the contract price. For contractors without an Iloilo City office, the tax is computed on 70 percent of their contract value. Contractors with a single project can pay a one-time permit fee, but those with multiple ongoing projects are advised to secure a regular permit.
Hermano added that contractors who fail to pay their taxes will be ordered to cease operations within the city.
For more news and updates on flood mitigation projects, visit Filipinokami.com.
