EDITORIAL - Better collection, not more taxes

Between raising taxes and more efficient collection, Cebu City Mayor Michael Rama is opting for the latter. And it doesn't take genius to see why. You can raise taxes as often and as high as you want. But if you do not have an efficient collection system, you still will not get to where you are going.

But not getting the desired revenues from higher and more frequent taxes because of inefficient tax collection is not the only problem to be caused by taking the easy and convenient way out of any financial distress.

There is also the problem of a backlash. A public that has long suffered from economic difficulties will not take kindly any additional burden of higher and more frequent taxes. And while this is a political challenge Rama might face, there is no underestimating the real havoc more taxes can cause on people's lives.

The times do not call for more taxes. Instead, a better and more efficient tax collection, as what Rama proposes, is the call of the day. On top of that, better fiscal management is desired so that whatever gains might be attained from good tax collections can be preserved for the good of all.

One peso in taxes collected properly can mean one peso in the city's coffers. A thousand pesos in taxes collected improperly can only line other people's pockets and may even result in still just one solitary peso breaking the stillness of the city's coffers. And none will be any wiser.

To be sure, taxes will have to rise eventually. But until better means of collecting them can be assured, there is no point in antagonizing and burdening everybody with more taxes that they cannot enjoy eventually in the form of better services.

Higher taxes are inefficiency's perfect excuse. They reward inefficiency instead of correcting it. Existing taxes are enough to serve the needs of a fairly large city such as Cebu if such taxes are collected properly.

So far, there is no showing by anyone that existing taxes can no longer meet the operational needs of Cebu City. The argument for raising taxes has always been that the revenues are not making their presence felt in the coffers. If that is the problem, then collection is the solution, not more taxes you cannot collect.