Bureau of Local Government Finance Opinion

March 14, 1994 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1ST INDORSEMENT Respectfully returned thru the Municipal Treasurer to the Chief, Business License and Permit Division, Mandaluyong, Metro Manila, her within letter dated December 10, 1993 requesting opinion relative to the letter dated September 1, 1993 of Atty. Edwin M. Joyas, in behalf of its client, Polymedic General Hospital, Inc. (PGHI),located at 163 E. de los Santos Avenue, Mandaluyong Metro Manila seeking the same clarification on whether or not that municipality has the taxing power to impose business tax on private hospitals. In this connection, it is informed that reference should be made to Section 143(h) of the Local Government Code of 1991, quoted hereunder: "Sec. 143. Tax on Business . The municipality may impose taxes on the following businesses: "(a) .... "(h) On any business, not otherwise specified in the preceding paragraphs, which the sanggunian concerned may deem proper to tax: Provided , That on any business subject to excise, value-added or percentage tax under the National Internal Revenue Code, as amended, the rate of tax shall not exceed two percent (2%) of gross sales or receipts of the preceding calendar year." (Underlining supplied.) casia The contention that hospitals are not specifically mentioned as one of the business establishments subject to the taxing power of the municipality is, therefore, not entirely correct. It is under the provisions of Sec. 143(h) quoted above that a municipality may tax private hospitals subject only to the conduct of a public hearing before the enactment of the tax ordinance. (SGD.) LORINDA M. CARLOS Executive Director