THE city of Makati expects to collect a staggering P6 billion in revenues once it takes full control of Fort Bonifacio, but first it has to win its legal tug-of-war with Taguig City.
Makati Mayor Jejomar Erwin Binay Jr. made the projection on Wednesday as he started wooing owners of business and commercial establishments in Fort Bonifacio including the upscale Bonifacio Global City.
“We are expecting about P6 billion, the bulk are real property taxes and business taxes,” said Binay in a television interview.
At the same time, he denied reports that Makati has higher taxes than Taguig and that it is difficult to set up a business in the country’s financial district.
“There is no truth to reports that taxes in Taguig are lower than Makati,” said Binay adding that the real property taxes in Makati and Taguig are just the same.
However, the residential, commercial and industrial tax rates in Makati are 1.5 percent, 2 percent and 2 percent, respectively, while those in Taguig are 1 percent, 1.5 percent and 1.5 percent.
Taguig also gives higher discounts for advance payments – 20 percent compared to Makati’s 10 percent.
“Makati’s tax rates are very competitive to Taguig, considering that Makati is the business and financial center and the unrivaled benefits we are extending to residents,” Binay’s media officer Joey Salgado said.
Binay assured owners of the businesses in the affected area of a “smooth transition” during the city’s takeover of Fort Bonifacio.
Taguig Mayor Lani Cayetano maintained that the status quo will remain and that Makati cannot yet take control of Fort Bonifacio because the case has not been decided with finality.
“We want the business community to know that status quo is there. We want them to stay calm. All their transactions will still be done with Taguig,” Cayetano said.
She also noted that more and more businesses and multinational corporations are relocating to Taguig because of the ease in doing business in the city, the lack of red tape and low rates of taxes.
Among the huge corporations that relocated to Taguig are Coca Cola, Samsung, Globe Telecom, Aboitiz, Deutsche Bank, Sunlife Financial, and Tanduay Holdings of business tycoon Lucio Tan.
Cayetano admitted that the city government will suffer economically if Makati City gets Fort Bonifacio, including the Global City.
“It is going to be a big blow. And this is the reason why we are united in saying that we will fight for Fort Bonifacio,” she said.