spot_img
28.4 C
Philippines
Friday, March 29, 2024

Makati hits DoF goal

- Advertisement -

The city government of Makati, after exceeding this year’s revenue goal, has also met the performance target set by the Department of Finance-Bureau of Local Government Finance.

City Treasurer Jesusa Cuneta said Makati has already achieved 100 percent of the BLGF total locally-sourced income target for the year amounting to P14.25 billion, after its actual collections from local sources reached P14.26 billion as of Nov. 30.

The bulk of revenues came from Business Tax with P8.08 billion (99 percent of BLGF target), followed by Real Property Tax with P5.35 billion (103 percent of target). The rest came from Fees and Charges (P616.01 million) and Economic Enterprises (P210.72 million), the treasurer said.

Cuneta said the BLGF computation of target collection from local sources is higher than the city targets on locally-sourced income.

Mayor Abigail Binay cited the city’s improved overall collection efficiency in the significant increase Makati’s revenue collection.

- Advertisement -

She also noted that Makati is among the few local government units in the country that are not dependent on the Internal Revenue Allotment, which accounts for only six percent of the city’s total income to date.

The mayor also reassured real property owners and businesses in the city that her administration was in no rush to heed the Commission on Audit’s recommendation to increase tax rates by adjusting the city’s schedule of fair market values, which was last updated in 1997.

“We see no pressing need to raise taxes at this time, considering the substantial growth in our revenue collection this year as compared to previous years. Adjusting our FMV schedule would affect tax rates and we want to ensure that it will not unduly burden Makati residents and the business sector,” Binay said.

The mayor said her administration is instead pushing the ongoing review of the city’s Investment and Incentives Code to effect appropriate amendments, such as placing incentives that would attract more investors to the city.

“We need to further strengthen Makati’s competitiveness as an investment destination. We are consulting with concerned stakeholders to be able to come up with a highly competitive incentive package suited to prevailing industry needs and standards,” she said.

Based on the latest data from its Business Permit and Licensing Office, Makati has registered some 4,294 new businesses with combined paid-up capital amounting to P20.27 billion to date.

As of November, the city has exceeded its own revenue collection target by 10 percent, with around P16.07 billion in actual collections versus its full-year target of P14.58 billion. It has also posted a 12-percent increase versus gross revenue collections in November 2016.

The bulk of collections consisted of Business Tax with P8.39 billion (99 percent of target) and Real Property Tax with P5.60 billion (134 percent of target). Compared to collection as of November last year, Business Tax has increased by nine percent while Realty Tax has increased by 17 percent.

Income from other local sources included Fees and Charges (P679.80 million) and Economic Enterprises (P210.72 million).

Meanwhile, income from other sources included Interest Income with P214.04 million, IRA with P975.49 million, Share from Economic Zone, P274.35 million, and Share from PAGCOR/PCSO, P6.46 million.

The 17-percent increase in RPT collection has been boosted by the aggressive collection efforts made by the city Finance Department, including the issuance of demand letters to delinquent real property owners as directed by the mayor.  

Satellite RPT payment centers in 31 barangays, which improved accessibility for taxpayers, have also increased collections.

Under the administration of Mayor Binay, Makati has registered its highest revenue collection in years without increasing taxes. In her first six months in office (July to December 2016), the city government had topped by over P600 million the revenue collection for the same period in 2015 under the previous administration.

As defined by the BLGF, locally-sourced revenues are collections generated by local government units from Real Property Tax, Business Tax, Other Taxes and Regulatory Fees, Service/User Charges and Receipts from Economic Enterprises. Income on external sources are from IRA, Other Shares from National Tax Collection, Inter-Local Transfer and Extraordinary Receipts/Grants/Donations/Aids, and Other Receipts – Interest Income and Miscellaneous Income.

The BLGF monitors the fiscal performance of LGUs using DOF data evidently sourced from the Statement of Receipts and Expenditures and data reported by local treasurers through the online reporting system of the Bureau.

- Advertisement -

LATEST NEWS

Popular Articles