A PROPOSED increase in local taxes and fees in Cebu City could discourage business expansion, threaten jobs and place additional pressure on households and small enterprises.
This promoted a consumer advocacy group to urge the city government to reconsider the proposed 2026 Local Revenue Code.
In a statement, the Cebu Consumer Rights Advocates (CCRA) called on the Cebu City Council to shelve the proposed 379-page revenue code, arguing that its provisions could undermine the city’s appeal as a business and investment destination at a time when companies are already facing rising operating costs and weak business sentiment.
The next public hearing on the proposed measure is scheduled for Nov. 10.
CCRA convenor Nathaniel Chua said the proposed increases could particularly affect high-volume, low-margin businesses, which account for a significant share of employment and economic activity in the city.
He warned that higher tax obligations could prompt companies to defer investments, reduce hiring or transfer operations to neighboring local government units such as Mandaue City and Talisay City.
“Cebu City earned its status as the Queen City through entrepreneurship, creativity, and enterprise. We should be protecting the spirit of the very engine that defined who we are as a city, not stifling it,” Chua said.
Provisions questioned
Among the provisions questioned by the group is a proposed increase of up to 339 percent in local business taxes for wholesalers and distributors with annual gross sales of P50 million. Manufacturers with annual gross sales of P500 million could face increases of as much as 225 percent, according to CCRA.
The group said these businesses, despite their relatively large gross revenues, operate on tight margins and employ substantial workforces. Higher tax payments could divert funds intended for facility expansion, wage increases and additional hiring.
CCRA also raised concerns over a proposed annual occupational tax on non-professional workers, including grocery clerks, salon employees, factory workers and restaurant service crews.
The proposal could also significantly increase waste collection fees. Residential households, apartments and condominiums could face annual garbage charges of P5,000, from the current P300.
Small neighborhood enterprises, including carinderias and sari-sari stores, could see annual garbage fees rise from P365 to as much as P10,000, the group said.
Market ambulant vendors could also face annual waste fees of up to P500, alongside higher market charges, while proposed registration fees would cover tricycles and motorcycles used for transport services.
The group warned that the combined increases could further strain household purchasing power and raise operating costs for micro, small and medium-sized enterprises (MSMEs).
“The public is already suffering on multiple fronts: inflation exceeding eight percent, sluggish growth, fuel and transport fare hikes, layoffs across key sectors, and weak business sentiment,” Chua said.
Adopt measured approach
Rather than imposing additional costs on consumers and enterprises, CCRA urged the city government to adopt a more measured approach to revenue generation that considers the capacity of businesses to absorb higher taxes without compromising employment and investment.
The group recommended phasing in or delaying proposed rate adjustments, exempting micro-enterprises and businesses registered under the Barangay Micro Business Enterprises program, and removing what it described as questionable occupational taxes on non-professional workers.
It also called for garbage fees to be supported by verified studies of actual service costs.
CCRA said Cebu City’s priority should be to protect economic activity and preserve jobs while ensuring that any changes to the local revenue system are fair and sustainable. / KOC
