OpinionsEye OpenerWhy donated computers from abroad should not be taxed

Why donated computers from abroad should not be taxed

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Last November 23 at the Bethel Guest House, we saw, in very concrete terms, the results of the successful sisterhood of Yeongdong, Korea and Dumaguete City. The donation of 100 units Digital Automatic Processing Machines (computers) from the National Information Society Agency of Yeongdong, Korea have arrived in Dumaguete City last Friday, November 20. Said computers, valued at 30,000 USD, are being donated for humanitarian and charitable purposes. Surely, this donation will go a long way of benefitting the City Government and the people of Dumaguete. These will be used by the different public schools, government offices, and the barangays of our city. Our heartfelt thanks and appreciation to you Yeongdong-gun. The city’s gratitude is deep and profound.

Government and non-government officials from the sister cities of Alameda, California, USA, Yeongdong-gun, South Korea, and Dumaguete City witnessed the turn-over of these computers from Yeongdong-gun, South Korea represented by Mayor Park Se Bok to City Mayor Manuel Sagarbarria of Dumaguete City. Our deepest and heartfelt thanks to you Yeongdong-gun for such a huge donation.

These computers actually arrived at the Port of Cebu last July 16, 2015. However, it took us sometime to negotiate for the possibility of exempting the donated computers from any fees or taxes. Upon the instruction of our City Mayor, I personally went to Cebu for this purpose to see Gen. Arnulfo Marcos, the District Collector of the Bureau of Customs, but I was just advised to write the Secretary of Finance who has the sole authority to grant us the necessary exemptions. So without delay Mayor Sagarbarria wrote Finance Secretary Cesar Purisima. But, unfortunately, the Secretary denied the Mayor’s request for lack of legal basis.

The City Government of Dumaguete through Mayor Sagarbarria and the City Council through Vice-Mayor Woodrow Maquiling had to allocate P525,000 to pay for the required fees and taxes. We would like to thank from the bottom of our heart Yeongdong-gun, because aside from the computer donation, they also extended financial assistance in the amount of P235,000 as their share to pay for the various fees and taxes imposed on these computers.

I cannot understand why donated computers from a sister city abroad could not qualify for tax exemption. Yeongdong-gun, a sister city of Dumaguete since 2007 is donating these 100 computer units as a humanitarian aid for the people of Dumaguete City. It took us about 4 months to take them out from the Port of Cebu because of the various fees that need to be settled, the biggest of which are the customs duties and taxes. Suffice it to say that these computers are being donated for humanitarian and charitable purposes. Under Article VI, Section 28 of the Philippine Constitution, such donation should be tax-free. But the Bureau of Customs and the Department of Finance are so adamant in their stand against the exemption of donated computers from fees and taxes “for lack of legal basis.”

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Alameda, California, USA and Yeongdong-gun are sister cities of Dumaguete. Their delegations were here in the city November 21-25, 2015 for a Sister City Conference to promote understanding and cooperation, share common interests and initiate programs that will be mutually beneficial to them. The conference, which brought together key leaders from the three sister cities, has provided an opportunity for sister city exchanges and sharing of views on education, good governance, climate change mitigation, and peace and security.

The participants took full advantage of the conference as this was one way of fostering positive relations of sister cities and strengthening exchange programs for the benefit and improvement of all. When we exchange information and spread our understanding there is always an opportunity for growth and prosperity.

During the fellowship dinner last November 23 at Hayahay Tree House Bar and View Deck, I felt honored and privileged to be given the task of introducing the individual members of the delegations from Alameda led by Mayor Trish Spencer, Yeongdong-gun headed by Mayor Park Se Bok, and the Welcoming Party of Dumaguete led by Mayor Sagarbarria and the city’s first lady Mrs. Maisa Sagarbarria. I made sure that our foreign visitors feel at home, allowing them to experience the culture of Dumaguete.

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Author’s email: wea_129@yahoo.com

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