Makati LGU assures no increase in biz, property taxes this year
Posted: 2017-Sep-09 11.22.46 UTC+0800
Updated: 2017-Sep-10 01.04.56 UTC+0800
Updated: 2017-Sep-10 01.04.56 UTC+0800
MAKATI — The City Government of Makati assured that it will not impose an increase in business and property taxes this year.
The assurance was made after the Commission on Audit (COA) recommended the updating of the city's schedule of fair market value (SFMV) which, according to its 2016 annual audit report, had not been updated since 1997.
Lawyer Michael Camiña, the mayor's spokesperson, in a stament said the city government is dealing with the COA recommendation to adjust the fair market value of properties in a judicious manner.
"Such an important decision requires in-depth study and thorough consultation with all the concerned stakeholders," Atty. Camiña said.
"Any adjustments in the FMV will affect tax rates and Mayor Abby would like to ensure that such adjustments, if and when implemented, will not prejudice the private sector and residents," he stressed.
He also pointed out that Makati, under the administration of Mayor Abby Binay, has seen its highest revenue collection in years without increasing taxes.
In fact, he said, in just the first six months of the current administration, the city government topped by over P600 million the total revenue collection from July to December 2015 under the previous administration.
Based on the latest report of City Treasurer Jesusa Cuneta, the total revenue collection of the city government as of July 31 has reached P12.65 billion, which is 87 percent of total revenue target for 2017. It is also higher by nine percent than the collection during the same period last year.
"We are focused on ensuring that proper incentives are in place for investors, as part of our push to be the first digital city," Atty. Camiña said.
The latest financial report issued by the City Treasurer shows that the bulk of the P12.65-billion collection came from Business Tax with P6.6 billion (eight percent increase), followed by Real Property Tax with P4.43 billion (nine percent increase).
Other local revenue sources for the said period include Fees & Charges (P546.2 million), Economic Enterprises (P123.4 million). All in all, collections from local revenue sources amounted to P11.73 billion.
Revenue collected from other sources included Interest Income (P135.4 million), IRA (P620.7 million), PEZA (P160.4 million), and PAGCOR/PCSO (P3.0 million).
Makati is among the few local government units in the country that are not dependent on the IRA.
A few months after Mayor Abby Binay began her term as chief executive of the country's financial center, several reforms and innovations were made in the systems and operations of the city government to make its services more efficient, accessible, and convenient to residents and taxpayers.
These included the convergence of all frontline offices involved in tax payment and renewal of business permits at the ground floor of Makati City Hall Building II, which relieved taxpayers of the burden of going from one building or floor to another. The absence of fixers was also noted by satisfied taxpayers.
Last June, the city government launched the new Makatizen Card, a unified, multi-purpose government-issued citizen ID that consolidates all health and social benefits for over 500,000 residents and city hall employees. Aside from paving the way for a cashless ecosystem that would make day-to-day transactions much more convenient for cardholders, the project is also envisioned to allow greater transparency in the implementation of the city's social welfare programs.
The city's first PPP venture in information technology was initiated through an unsolicited project proposal from Globe Telecom and iBayad Online Ventures which offered to supply around 500,000 Makatizen Cards at no cost to the city government.
Recently, the city government also entered into more digital PPP ventures, including the installation of a Fiber Optic Loop within and around the city, in partnership with Converge Information and Communications Technology Solutions, Inc. and Neo Tech Asia Distribution, Inc., for the implementation of the Makati Public WiFi System.
Another is the putting up of mobile signal boosters to strengthen cellular and internet connectivity in partnership with Aim Technologies, Inc. and Market Research Knowledge Technology, Inc. (PIA)