Makati posts P8.33-B revenue

MANILA, Philippines - Makati City reaped a total of P8.33 billion in revenue for the first five months of the year, 6 percent higher than its revenue collection for the same period in 2013, the city government reported on Friday.

Based on the report of the Office of the City Treasurer to Makati Mayor Jejomar Erwin Binay, the highest collection of P4.2 billion came from business tax, followed by real property tax amounting to P3.23 billion. Compared to collections in the same period last year, business tax increased by 6 percent while real property tax increased by 8 percent.

Binay said the city’s income has continued on an upward trend despite the fact that its tax rates have remained the same since 2006, when its new Revenue Code took effect. 

“We have so far sustained the city’s annual revenue growth even without increasing tax rates for the past seven years. We attribute our success largely to our ability to maintain a healthy investment climate that continues to draw new investors and stimulate business growth,” Binay said.

Binay also noted that the city’s efficient tax collection system has ensured that local revenue sources continue to make up the bulk of its annual revenue collection, with its internal revenue allotment accounting for barely 6 percent.

“Based on a report published recently by the Department of Finance and the Bureau of Local Government Finance, Makati has the highest share of locally sourced income among 144 cities in the country,” Binay said.

In the said report, local sources contributed 92.6 percent of the city’s estimated annual regular income, exceeding those of Quezon City and Manila, computed at 77.2 percent and 75.7 percent, respectively.

Binay said the city’s technology-driven initiatives have helped improve collection efficiency primarily by facilitating transactions with City Hall, such as the computerized barangay realty tax payment program.

For around 10 years now, Makati landowners have enjoyed access to satellite realty tax payment centers in barangay halls electronically linked to City Hall and capable of issuing electronic official receipts, with each transaction completed within five minutes. Taxpayers only need to submit relevant information, such as their Tax Declaration Number, or present their latest official receipt.

To date, there are 17 satellite payment centers that operate on scheduled dates every quarter in barangays Bel-Air, Urdaneta, Dasmariñas, Forbes Park, Magallanes, San Lorenzo, Pio del Pilar, Bangkal, Palanan, San Antonio, Tejeros, Kasilawan, West Rembo, East Rembo, Comembo, Pembo and Guadalupe Nuevo. 

The city government has also made available through the city’s website, www.makati.gov.ph, downloadable application forms for Business Permit, Individual Mayor’s Permit, and Locational Clearance for easy access to clients, who need not line up at the corresponding City Hall offices to get the forms.

Meanwhile, other locally sourced revenue for the city also increased as of May, with miscellaneous fees up by three percent at P430 million, while economic enterprises grew by 19 percent with over P100.9 million income.