Team Rama dads cynical on revenue target hike

CEBU, Philippines - Members of the opposition in the Cebu City Council were pessimistic about the proposed increase in the revenue collection target of the city government next year.

City Treasurer Tessie Camarillo presented P4.9 billion revenue collection target for 2017 during the resumption of the budget hearing yesterday. The amount was doubled the 2015 and 2016 revenue targets.

Camarillo said the city government's collection efficiency in 2015 was 73.82 percent while 58.02 percent from January to September this year.

According to Camarillo, the city government collected P2.4 billion in business taxes, real property taxes, and other taxes in 2015. From January to September this year, the city government has so far collected at least P2.2 billion.

City Councilor Raymond Alvin Garcia questioned the increase in the target considering that the city miserably failed in meeting its targets in the last two years.

 "I think you are overstating your targets. Why do I say that? If you look at your income target in 2015, as your actual income in 2015, you never met your targets. 86 percent collection RPT (Real Property Tax), business other taxes, 68 percent. You collected 73.82 percent total tax revenue of your target in 2015," he said.

Garcia said the city's collection this year is only 58 percent, a reduction from the last year's 73.82 percent.

"How can you project P4.9 billion in local sources when in 2015 your actual income is only P2.4 billion and in 2016, it's P2.5 or P2.6 billion. Now it's 4 billion. I don't understand that particular portion. We are only talking about local sources," he said.

Garcia said the city government should instead focus on the efficiency in collecting business taxes, real property taxes, among other taxes.

"Those that within our power to collect, we are very poor at collecting. So, you cannot say that you can project that figure. There is no way you can project that figure. It's too bloated. You are sandbagging. It's too big. I'm just pointing that out. It's very impossible. It's very unrealistic," he said.

Vice Mayor Edgardo Labella said the City Council should listen first on the plans and programs of the executive department before questioning further. Labella said the executive department should present its collection strategy that they will implement to meet the target revenue for next year.

Camarillo said the City Treasurer's Office will implement the executive order issued by Mayor Tomas Osmeña on the Task Force Tax Declaration.

In this task force, she said the city will reconcile all real property records particularly those long overdue or dormant account with the Office of the City Assessor.

She said the city will identify and evaluate the real property units and it will collect the identified delinquent real property tax.

"On the real property tax, our tax base is very low. The general revision in 2003 and was implemented in 2006. If we compare sa Mandaue and Lapu-Lapu City, our assessment level is low so no matter how we strive to collect, mabilin gyud ta because of our tax base," she said.

Camarillo said the city will then push for the general revision of the tax base to increase its collection. She said the projected income of the city would be attained if the City Council will approve the proposed P3.2 million for tax mapping operations program for business establishments and P3.4 million for tax mapping operations program for real properties.

City Councilor Jocelyn Pesquera, chairperson of the committee on budget and finance, said the executive department should come up with new strategies and not only tax mapping.

"Tax mapping is part of your job," she said.

Camarillo said the city government will also be collecting the tax delinquencies in the previous years and those that were undervalued taxes.

Councilor Jose Daluz III said that increasing the collection target would affect the performance of the City Treasurer's Office and the City Assessor's Office if they are not able to meet the target.

"Akong punto here is gitaas ang target kay makita na ang efficiency sa atong Assessor's office ug sa inyong office," he added.

Pesquera asked the City Treasurer's Office to submit the aging of accounts to see the uncollected taxes, delinquency, and other charges and interests. The budget hearing will resume Friday. (FREEMAN)