A whooping P8 billion was posted by the Makati city government in its revenue collection for the first half of this year, surpassing by six percent its record in the same period last year.
Makati Mayor Jejomar Erwin Binay said the bulk of the total annual revenue collections of the city came from business and real property sectors.
“Taxes from the business and realty sectors have consistently driven our revenue growth year after year for over two decades now,” he said.
Binay said the increase in revenue is but a reflection of the sustained confidence of investors and real property owners in the city as the “undisputed prime investment destination in the country.”
In a report to the mayor, City Treasurer Nelia Barlis said the bulk of the collections for the first six months of the year came from business tax, amounting to P4.06 billion, and real property tax, P3.03 billion.
Compared to 2012, business tax collected increased by six percent, while realty tax increased by 7 percent from January to June.
Of the total amount of P8.09 billion only P360 million came from the Internal Revenue Allotment (IRA), equivalent to 4.45 percent.
Aside from business and realty taxes, collection from other local sources included P448.58 million from fees and charges, P115.56 million from economic enterprises, and P71.94 million from interest income.
Binay also lauded the city’s Finance team for its efficient collection program that ensures sufficient funding for the major programs of the city government this year, including the upgrading of systems aimed towards more efficient and effective delivery of services.
From January to June 2013, the Business Permits Office registered a total of 4,224 new businesses and 56,834 businesses that renewed their license to operate in the city.
The new registrants added around P33.64 million in taxes to the city coffers, while renewals generated P4.53 billion in revenue during the said period.
Makati’s income from local sources has consistently topped that of other cities in Metro Manila.
Since its new Revenue Code took effect in 2006, the city government has been implementing a moratorium on tax increases, yet its total revenue collections have continued to increase year after year.
The city has also remained deficit-free for the past 26 years.