Bureau of Local Government Finance Opinion

August 11, 1997 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The City Treasurer City of Butuan M a d a m : Transmitted herewith is a copy of the letter of even date of this Bureau addressed to Atty. Antonio B. Sta. Romana, Legal Counsel of San Miguel Corporation, bearing on his query on the slaughter permit fee of P0.05/kilo and slaughter fee of P0.45/kilo presumably being imposed by that city on San Miguel Foods, Inc. (SMFI). It appears that SMFI operates a poultry farm located in Taguibo, that city, and the chicken raised by the company are slaughtered in its own private slaughterhouse. On the basis of this representation, this Bureau expressed the view that the slaughter fee of P0.45 per kilo will not be collectible from SMFI considering the provisions of Sections 153 and 154 of the Local Government Code of 1991 inasmuch as the city renders no services in connection with the slaughtering of chicken produced by the company, not to mention also that the slaughterhouse is not owned and operated by the city government. However, it will be noted from this Bureau's letter that SMFI shall be subject to the Mayor's permit fee for operating said slaughterhouse, ante-mortem and post-mortem fees, and such other inspection and regulatory fees imposed in existing tax ordinances of the city in the exercise of its police powers, especially in ensuring that chicken slaughtered in the company's slaughterhouse would be fit for human consumption before sale and delivery to customers. Accordingly, if SMFI is already paying the fees mentioned in the preceding paragraph, it shall no longer be liable to pay the slaughter permit fee of P0.05 per kilo in question. What was not mentioned in our letter but which may, of course, be also collected from SMFI would be business and real property taxes, as well as service charges such as garbage collection fees. For your information. Best regards. Very truly yours, (SGD.) LORINDA M. CARLOS Executive Director