July 18, 2019

REPUBLIC OF THE PHILIPPINES

Office of the City Treasurer
City of Cebu

Attention : _____________– OIC City Treasurer

In re : Letter of Protest against Local Business Tax (LBT)

Assessment for CY 2019

Dear Atty. Castillo:

Good day!

We are writing to you this letter to formally protest the assessment of Local Business Tax (LBT)
payable by ______________________in the year 2019 based on the sales or receipts for the
preceding year due to our request for reclassification thru a letter received by your office dated July 3,
2019.

Attached hereto are the copies of the Assessment and Letter marked s as ANNEX “A’’ and
ANNEX “B”, respectively and made integral parts hereof.

It is in our opinion that there is an error in the assessment of Local Business Tax payable by
________________since the company is primarily engaged in electricity that can be categorized as
“MANUFACTURER/PRODUCER” for LBT purposes not as “CONTRACTORS” with an
assessed amount of Php 19, 823,043.64 as initially computed and rate imposed for
“CONTRACTORS” as per Revenue Code of Cebu City.

Further, in our request letter we already cited a case of Trans Asia Power Corporation that operates
the same way as ______________, where the court settled that Trans-Asia should be classified as a
“MANUFACTURER/PRODUCER” for LBT purposes since fuel bunker as its chief raw material
and coverts it through mechanical and chemical processes to electricity is sold to its customer.

Lastly, we would like to take note that _____________is paying the third installment / 3rd Quarter of
Local Business Tax but the said payment is now UNDER PROTEST since we are waiting for the
approval of our application for re-classification as “Manufacturer/Producer” Business Company.

Thank you very much.

Very truly yours,

______________________