A CITY councilor here dashed hope for the reduction of monthly rentals of stall owners at the city’s Malimgas Public Market, saying such a reduction is prohibited by the Local Government Code.

Councilor Jesus Canto, chairman of the committee on market and slaughterhouse of the city council, said under the Local Government Code, stall rental reduction can only be made after five years starting 2005.

Canto said the existing rate of stall rental in the city’s public market was fixed by a city ordinance enacted during the administration of then Mayor Benjamin Lim and the same can be amended only after five years.

This tax rate set forth in an ordinance enacted by the previous administration cannot be amended or repealed, he added.

The tax rate, it was learned, was fixed at a higher amount so that the city government can pay its quarterly amortization to the more that P380 million it borrowed for the construction of the market from the Land Bank of the Philippines.

Stallholders at the public market are asking a reduction of their rentals saying these are too high.

They said to date, only a few people are buying from the two-year old public market yet.

Canto, at the public hearing he conducted with members of the Malimgas Aliguas Dagupan Vendors Federation (Madavfe) last week, bared the tight fix the city and vendors are in with regard to any stall rental reduction now.