Achib na naman! Makati hits DOF’s revenue target
Makati City is doing an excellent job in hitting its revenue target this year.
After exceeding its 2017 city revenue target in November, the city has also met the performance target set by the Department of Finance-Bureau of Local Government Finance (BLGF).
Mayor Abigail Binay cited the city’s improved overall collection efficiency as a major factor in the significant increase in the city’s revenue collection.
She also noted that Makati is among the few local government units in the country that are not dependent on the Internal Revenue Allotment (IRA), which accounts for only six percent of the city’s total income to date.
With this development, the lady politiko reassured real property owners and businesses in the city that her administration was in no rush to heed the Commission on Audit’s (COA) recommendation to increase tax rates by adjusting the city’s schedule of fair market values (FMV), which was last updated in 1997.
“We see no pressing need to raise taxes at this time, considering the substantial growth in our revenue collection this year as compared to previous years. Adjusting our FMV schedule would affect tax rates and we want to ensure that it will not unduly burden Makati residents and the business sector,” she said.
She said her administration is instead giving priority to the ongoing review of the city’s Investment and Incentives Code in order to effect appropriate amendments, such as putting in place incentives which would attract more investors to the city.
“We need to further strengthen Makati’s competitiveness as an investment destination. We are consulting with concerned stakeholders to be able to come up with a highly competitive incentive package suited to prevailing industry needs and standards,” she stressed.
Makati has achieved 100 percent of the BLGF total locally-sourced income target for the year amounting to P14.25 billion, after its actual collections from local sources reached P14.26 billion as of November 30, 2017.
The bulk of revenues came from Business Tax with P8.08 billion (99 percent of BLGF target), followed by Real Property Tax (RPT) with P5.35 billion (103 percent of target). The rest came from Fees & Charges, P616.01 million and Economic Enterprises, P210.72 million.