TABUK CITY, Kalinga – The Bureau of Internal Revenue (BIR)-Kalinga conducted a meeting with the different construction companies/ businesses in the city at the City Hall gymnasium on March 17 to discuss the excise tax and other BIR issuances, and situs of taxation, as part of the 2025 Tax Campaign with the theme “Buwis na tapat, tagumpay nating lahat.”
In his message to construction company owners and liaison officers, Mayor Darwin Estrañero emphasized the importance of including the complete amount of excise tax in the project schedule to prevent tax evasion.
According to the Mayor, the construction sector contributes to local revenue collection through business taxes and the city’s 5% royalty fee on each project, which is used to fund various public programs and services.
He urged the contractors to take full responsibility of all their obligations, as their payment of required taxes significantly affects the city government’s operations.
Assistant City Treasurer Ethel Dale Velasco discussed the Situs of taxation and other laws of the Tabuk City Revenue Code to the participants.
She explained that if the main office is in one local government unit (LGU) but operations extend to another, business tax is levied. Furthermore, where there is a branch, the local government where the branch is located taxes 100% of gross receipts.
Situs tax is crucial because it eliminates double taxation by establishing which LGU has the authority to tax firms, guaranteeing equitable allocation of local resources, particularly for businesses that operate in numerous locations. Situs tax also promotes local economic growth by providing incentives to local governments under their authority.
During her presentation on excise tax and BIR issuances, Vivian Tarectecan, Revenue District Officer, stated that mineral items, both metallic and non-metallic, are liable to excise taxes. The excise tax on mineral goods, both metallic and non-metallic, labeled as domestic or local must be paid by the maker or producer on the day of extraction or processing, she explained.
Representatives from the National Irrigation Administration-Kalinga, the City Public Information Office, and the Business Permits and Licensing Office all attended the construction sector meeting.
The BIR reiterates that the government relies on taxes and contributions from its members to function and run properly, as well as to continue its programs and services. By Darwin Serion
