An ordinance proposed by Councilor Myrna Dalodo-Ortiz imposing zero percent tax on the local business tax of the Japanese Official Development Assistance (ODA) funded projects in Davao City was passed on third reading during the regular session of the City Council on Tuesday.
Section 2 of the ordinance said that a zero percent tax on local business tax of the contractors and other independent contractors under Ordinance No., 0291-17, as amended by Ordinance No. 0147-19, shall be imposed against a project proven to be funded by the Japan-ODA.
Dalodo-Ortiz, chair of the committee on finance, ways, means, and appropriations, underscored in her proposed ordinance that to be granted the privilege imposed in Section 1, the applicant must submit to the City Treasurer’s Office (CTO) a confirmation from the Ambassador of Japan of inclusion of the project to the current updated list of Japan-ODA funded projects, and proof of payment of tax obligations before the enactment of this ordinance.
The ordinance mandated the applicants granted the zero percent tax privilege to submit an annual report to the CTO detailing the progress and financial status of the Japan-ODA-funded projects.
Among the projects funded by the Japan International Cooperation Agency (JICA) for Davao City include the construction of the building at the Southern Philippines Medical Center (SPMC) and ongoing infrastructure projects such as the Davao City Bypass Road and the Davao City Coastal Bypass Road
