THE Makati City government posted P11.9 billion in revenue collection from local sources for the year 2013, surpassing its target by 4.9 percent.
In a report to Mayor Jejomar Erwin Binay, City Treasurer Nelia Barlis said that the bulk of the collections came from business taxes with P6.16 billion, which is 7 percent higher than 2012.
The city’s next biggest local revenue source was real property tax, with P4.16 billion which is higher by 1 percent than the previous year’s total. Barlis said that the increase in revenue collection can be attributed to strong investor confidence, made evident by more new businesses and high rate of renewals with City Hall’s Business Permits Office.
Barlis said that total registrants rose from 32,020 in 2012 to 33,116 as of end-December last year. Of these, new businesses increased to 4,721 from 4,295 in the same period, while renewals increased from 27,725 to 28,395.
For the same comparative period, the city’s collection from miscellaneous fees and charges increased by 6 percent, from P605.31 million to P642.22 million. Binay said that investor confidence in the city remains strong as its revenues continue to increase year after year, despite a moratorium on tax increases that has been in effect since its new Revenue Code took effect in 2006.
“We assure the business community that we have no intention of increasing tax rates this year,” Binay said.
He said that the city’s healthy financial standing assured the people of Makati and stakeholders in the business sector that they will continue to enjoy quality public service, as well as greater convenience and security to be provided by more innovative programs, supported by modern infrastructural developments.
The mayor also noted that Makati’s share of the internal revenue allotment (IRA) in 2013 has further dropped by 7 percent compared to 2012, and accounts for only 5.89 percent of the total revenue collection of P11.99 billion.
“Our decreasing IRA share is being offset by our local sources of revenue,” Binay said.