Re: Authority of Business Permit and Licensing Office (BPLO) to Assess Amusement Tax, Tax on Printing and Publication, Tax on Delivery Trucks and Vans, and Contractor's Tax

September 19, 2016 BLGF OPINION NO. 033-2016 CO-LFPS-PPPSD Mr. Gualberto B. Bernas IV OIC-City Treasurer Paraaque City Metro Manila SUBJECT : Re: Authority of Business Permit and Licensing Office (BPLO) to Assess Amusement Tax, Tax on Printing and Publication, Tax on Delivery Trucks and Vans, and Contractor's Tax Dear Mr. Bernas : This has reference to your letter dated 07 June 2016 requesting for clarification on the authority of the Business Permit and Licensing Office of Paraaque City (BPLO-Paraaque City) to assess the following types of taxes, to wit: HTcADC Amusement Tax; Tax on Printing and Publication; Tax on Delivery Trucks and Vans; Contractor's Tax. Representation was made that the BPLO under the Office of the Mayor of Paraaque City is claiming to have authority to assess the above-mentioned types of taxes. Hence, the following legal inquiries, to wit: What is the legal basis of the BPLO of Paraaque City to exercise the power to assess the aforesaid taxes? Does the act of the BPLO of Paraaque City in assessing said taxes constitute a violation of a particular law? To address the issues, this Bureau has consistently taken the position that the assessment of business tax is an inherent function of local treasurers pursuant to the Local Government Code of 1991 and its Implementing Rules and Regulations (IRR). Thus, unless there are express and explicit provisions to the contrary, specifically stating that assessments of business taxes shall be conducted by the BPLO, such function shall remain to be exercised by the Office of the City Treasurer. Case in point, in particular, is our 2nd Indorsement dated 15 February 2013, in the case of San Carlos City (Pangasinan), copy enclosed, bearing on issue of similar nature. The Chief of the City Licensing and Permit Division of the Office of the Mayor claimed, among others, the exclusive authority to perform tax assessment of business establishments pursuant to said JMC No. 01. In light of the recent Joint Memorandum Circular No. 01 dated 30 August 2016 by the Department of the Interior and Local Government and the Department of Trade and Industry, copy of which is hereto attached, it is clear that the amount of taxes, fees and charges, as shown in the supporting forms/annexes, are to be determined and signed off by the local treasurer. As regards the second query, the act of the BPLO of Paraaque City in assessing said taxes is clearly beyond the ambit of its jurisdiction and may be considered ultra vires. aScITE It is hoped that we have provided clarity on the matter. Very truly yours, (SGD.) NIO RAYMOND B. ALVINA OIC Executive Director