Mandaluyong tax hike explained

Mandaluyong city officials are reaching out to their constituents to explain the increase in real estate taxes effective this year.

City Mayor Benhur Abalos, Vice Mayor Jesse Cruz, executive secretary Epifanio de Guzman and members of the Sangguniang Panlungsod are holding daily forums and assemblies in different barangays to explain to the people the merits and the need for the increase, from two percent to 2.5 percent.

Abalos said that until Jan. 1 of this year, Mandaluyong City residents were paying one of the lowest, if not the lowest tax on real property in Metro Manila.

In a dialogue yesterday with officers of four big homeowners associations at the Manna Fil-Asia Restaurant along Shaw Boulevard, Abalos said Mandaluyong's rate was for many years pegged at two percent compared to 2.5 percent in Pasig City, Quezon City, San Juan and elsewhere in the metropolis.

"We have not changed our land valuation since 1994 even though we are allowed by the Local Government Code to revise it once every three years," said Cruz.

City Councilor Rene Sta. Maria stressed that the ordinance provides for a staggered implementation of the tax increase; 35 percent in the first year, 70 percent in 2001, and the full one half percent increase in 2002 to cushion its effect on the taxpayers, so that one who was paying P2,000 in property tax in 1999 will have to pay P2,175 this year, P2,350 in 2001 and P2,500 in 2002.

Abalos explained that because of the demands of increasing population and the basic services the city government has to provide, like health care, social services and environmental sanitation, city hall had to raise the real property tax and bring it to the level of neighboring local government units.

He stressed that the reduction of the share of the Internal Revenue Allotment could really hurt the LGUs and impair the delivery of basic services. "I foresaw this that's why we had to prepare for it, " he stressed.

"On top of this, we have to provide funds for the 10 percent increase in the salaries of employees as directed by President Estrada last year," Abalos said.

He further explained that more and more services are being devolved to LGUs. "We have to pay for salaries of teachers, health and social workers, as well as provide allowances for our policemen and firemen."

After the dialogue, business and civic leader Nandy Charvet of Barangay Plainview said the tax increase is reasonable and justified.