Cebu Businesses Ask for Reprieve on Bills, Taxes, Bank Interests Because of COVID-19 Crisis

Cebu businessmen requested bankers and utility providers for possible reprieve on their fixed expenses such as loans, water and power bills in this time of crisis due to the coronavirus disease (COVID-19).

They also asked the Bureau of Internal Revenue (BIR) for possible leeway in the tax payments.

Governor Gwendolyn Garcia met with the officials and representatives of the Cebu business and retailer community, BIR 7, Department of Labor and Employment 7, Visayan Electric Company (VECO), Metro Cebu Water District (MCWD), and the various banks operating in Cebu on Wednesday, March 11 to discuss the issue at hand.

Cebu Chamber of Commerce and Industry (CCCI) President Felix Taguiam reported that many of their members, who are also members of the Hotel Resort and Restaurant Association of Cebu (HRRAC), have been badly hit by COVID-19.

Majority of CCCI’s members are from the micro, small, and medium enterprises (MSMEs) which are the “lifeline of the business sector of the province,” he said.

He shared that currently, HRRAC only has an occupancy rate of 15-20 percent.

“Previously, hotels and resorts get as high as 600-bed occupancy. Now, only 100 beds are occupied. From seven restaurants opened, only three remain,” he said.

“Downtown hotels, which cater to guests that visit the city for business purposes for a night or two, only have around 20-30 rooms occupied from a high of 100 beds before,” he added.

Mandaue Chamber of Commerce and Industry (MCCI) President Steven Yu shared that the outbreak sparked public fear affecting the tourism industry first, which is a “big lifeblood of Cebu businesses after BPOs (business process outsourcing).”

“Tourism slowed down, total consumption in Cebu slowed down, and there’s a significant decline in mall traffic,” he added.

Although the government’s priority to ensure the welfare of its people is understandable, Yu emphasized the need to also “sustain businesses and stabilize the financial ecosystem.”

Retailers are also tightening their belts, said Philippine Retailers Association Cebu Chapter President Robert Go, as they were already affected by the African Swine Fever (ASF) emergence in the country.

“Restaurants and malls got the biggest hit. They are now thriving at 20% na lang,” he said.

“The industries hit are now on survival mode. Please help these industries stay afloat,” Go asked.

Bank representatives committed to help the Cebu business community but would still need the final decision on the strategies to be applied from their respective head offices.

“The banking industry is fully aware of the situation right now. However, we still have to bring this to the top levels to be properly reviewed,” said Cebu Bankers Club President Neil Yu.

He also said that a letter from the governor would have great impact in pushing the concern to the banks’ top management.

“The position paper sent by the business community was the trigger. And what can pull the trigger bringing significant effect would be the Governor’s letter,” Neil added to which the rest of the bank representatives agreed.

Following the bankers’ suggestion, Garcia will send a letter addressed to the top management of each bank enjoining them to take heed of Cebu’s cry for relief needed to overcome the COVID-19 crisis.

The chambers’ unified position paper explaining the situation will be attached to the Governor’s letter.

The letter will also be sent to the top management of VECO, MCWD, and BIR.

The group is set to meet again on Thursday, March 19 to discuss the relief options banks and utility providers can offer to Cebu businesses. (Lianne Llesol/SugboNews)