Motels in Metro Manila and elsewhere which are expecting full occupancy this Valentine season will be required to pay higher taxes by the Bureau of Internal Revenue.

BIR Commissioner Joel L. Tan-Torres told reporters during the launching of the 2010 tax collection drive in Makati that his staff is drafting regulations to change the old tax schedule to enable the government to raise more revenues from the motel sector.

Makati Revenue Regional Director Jaime Santiago and his nine revenue district officers organized the tax campaign launching rites that was attended by business executives and officers of various business and professional groups.

The tax campaign aims to raise at least P91 billion from the Makati revenue region this year.

Tan-Torres said the proposed regulations are based on a study conducted by Quezon City Revenue Regional Director Antonio Montemayor who has jurisdiction over areas where motel businesses proliferate like in Pasig.

Under the present arrangement, motel operators pay only income and value-added taxes based on a daily one and one-half percent occupancy rate per room.

The BIR wants to raise the occupancy to two percent and even up to three percent. It pointed out that most of the trysting lovers stay only from two to three hours in motels, giving the establishments high turnover rates.

Montemayor said that if motel owners would not agree to the proposal, the BIR can devise other schemes in assessing their tax liabilities, such as counting the number of towels and bedsheets used on a daily basis. (Jun Ramirez)