Makati hits 80% of revenue target

MANILA, Philippines —  Makati has attained 80 percent of its revenue target this year, with a total collection of over P14.7 billion as of April.

In a statement yesterday, Mayor Abby Binay said higher revenue ensures adequate funding to sustain the implementation of social programs in the city.

“Our robust revenues provide us with the financial stability we need to continuously implement programs that go well beyond the basic needs of our constituents,” Binay said.

“We are grateful to our taxpayers for their trust and confidence in the local government, especially the business sector, which remains the largest contributor to the city coffers,” she added.

Binay said local revenue sources make up the bulk of the city’s income, noting that it is among the few local government units that are not dependent on the national tax allotment.

Citing a report from the city treasurer, the local government said Makati collected nearly P8.2 billion in business tax and P5.2 billion in real property tax.

Records from the city’s business permit and licensing office showed that Makati registered 1,820 new businesses in the first four months of the year. This is separate from the 34,203 businesses that have renewed their permits.

“Our total budget this year is P21.1 billion. The social development sector has the lion’s share with an allocation of P10.4 billion or 49.43 percent,” Binay said.

She said P4.5 billion is allotted for education, P4.1 billion for health and P1.8 billion for social welfare.

Lower tax rates

Binay said the city government is eyeing to reduce tax rates, especially real estate tax, considering its strong revenue.

“Given our robust revenues and strong cash position, I believe we can afford to reduce tax rates, especially for real property,” Binay said.

“It would make the city more attractive to local and foreign investors, thus increasing Makati’s competitiveness as a premier investment destination in Asia,” she added.

Binay earlier announced her administration’s plan to reduce real property tax and other local taxes, especially due to the savings accrued to the city from subsidies previously allocated to 10 enlisted men’s barrio or “embo” barangays, which are now under Taguig’s jurisdiction.