The Makati City government has surpassed by 13 percent its P17.8-billion revenue target for 2023 and recorded a 41 percent increase in business tax collection in the third quarter of the year.
The city collected a total of P20,051,906,452 as of September 30, representing a 21-percent increase over the same period last year, and P11,211,357,657 as of end-September, according to the city treasurer’s office.
“Clearly, Makati’s local economy has regained its vibrancy and is now growing by leaps and bounds. We are again posting double-digit growth in revenues from local sources, especially from Business Tax which nearly doubled even before yearend,” Mayor Abigail Binay said.
The Business Permit and Licensing Office reported a total of 3,791 new businesses registered and 35,440 renewed business permits as of the end of September. The new enterprises chalked up a total of P25.47 billion in capital investments, while total gross sales of existing businesses reached P1.65 trillion this third quarter.
“It is gratifying to see how fast businesses in the city are recovering, and how investor confidence has rebounded in the past months. We are inspired all the more to pursue innovations in the way we serve our stakeholders to make the experience as convenient and seamless as possible,” Binay said.
She said with its robust revenue growth, the city can sustain its enhanced social programs while promoting transparent and digitally transformative governance.
City treasurer Jesusa Cuneta reported that Business Tax comprised the bulk of the revenue collection, followed by Real Property Tax with P6,013,599,432 which is 125 percent of the target and four percent higher than the same period last year.
She said collections from business and realty taxes have also been driven by the continuing intensive drive of the city’s Finance department to serve notices of delinquent payments to business owners and real property owners in the city.
The city’s local revenue sources which posted a 24-percent increase overall include fees of P753.72 million, and Economic Enterprises, P289.59 million. From other sources, the city got P1.25 billion in National Tax Allotment (NTA), P232.41 million as a share from the Economic Zone (PEZA), and P297.49 million from Interest Income.
Makati continues to be among the few local government units in the country that are not dependent on the NTA (formerly Internal Revenue Allotment or IRA).
Since 2017, the Binay administration has been instituting reforms to promote transparency, accountability, and efficiency in operations at City Hall.
For six straight years now, the city has obtained an “unmodified opinion” from the Commission on Audit (COA).
According to the COA, an unmodified or unqualified opinion is given to local government units (LGU) when the “auditor concludes that the financial statements are prepared in all material respects, by the applicable financial reporting framework.”