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Manila tax collection rose to P4.61 billion in January.

The Manila City government was still able to generate higher earnings last month despite having to refund around P200 million worth of realty tax.

In its Comparative Statement of Revenues document obtained by the BusinessMirror, the Office of the City Treasurer (OCT) of Manila said its total revenue collection for January rose to P4.61 billion, from P4.53 billion in the same period last year.

Among the departments of the Manila City Hall, the OCT was able bring in the biggest revenue from its tax collections for January 2018.

During that period, OCT recorded P2.5 billion-an increase of over P300 million, from the P2.1 billion in same period in 2017.

This is already more than half of the OCT's target of P4.87-billion tax collection this year.

The OCT attributed the higher tax collection to their intensified campaign against erring taxpayers.

Tax refund

While the Department of Assessment (DOA) of the City of Manila generated the second-highest revenue last month at P1.3 billion, it saw a significant decrease in its collections, as it grapples with the reimbursement of real property taxes (RPT).

Last year the DOA was able to rake in P1.6 billion after the City of Manila implemented a new ordinance raising the RPT in its jurisdiction by 40 percent.

The Manila City government later decided to scrap the ordinance after it was able to successfully recover from its debts, which it incurred prior to 2013.

The OCT said they will deduct the 'overcharged' tax from the billing of the affected taxpayers.

Extended deadline

Because of the extended deadline approved by Manila Mayor Joseph E. Estrada in the payment of business taxes, permits and licenses last month, the Manila City Hall's Business Promotions and Development Office (BPDO) was also unable to maximize its collection for that period.

Estrada decided to reset the deadline for business taxes and permits and licences to February 9 in consideration of establishments, who were unable to pay their taxes, when the Manila City Hall offices were temporarily closed for the Feast of the Black Nazarene.

But, even with the deferred deadline, the BPDO was already able to collect P230 million, which is 6.53 percent higher compared to the P216 million in January 2017.

Except for its business-regulatory plates/stickers, the BPDO's income from permits and fees rose last month, indicating the strong business performance in the city.

Most of the the BPDO earnings came from its business permits with P193 million, and occupational permit fees with P21.6 million.

Top income generators

The General Services department recorded the biggest revenue growth, when it was able to register a 2,823.31-percent increase.

The bulk, or P250 million, of its revenue last month came from its 'Misc. Profit Sharing.'

This was able to offset the P4.8-million decline in the other subcategories of General Services, which include rental of government property and sale of patrimonial properties.

Total revenue for the General Services for January was pegged at P253.7 million, from P8.6 million in the same period in 2017.

For 2018 the City of Manila is targeting to generate P1.39-billion income from its general services. The bulk, or P1.3 billion, is expected to come from its sale or lease of patrimonial properties under joint-venture agreement. According to the Land Management Bureau, patrimonial lands are lands of certain haciendas, which were acquired by the government from religious orders/corporations or organizations in 1902.

Another top revenue generator by the City of Manila was its Engineering Department, which was able to generate an additional P14 million.

Most of the said earnings came from electrical-inspection fees (P1.7 million), electrical-permit fees (P9.3 million), mechanical fees (P6 million) and plumbing-inspection fees (P2.2 million).

The OCT said it is optimistic the City of Manila will be able to reach its target of P14.8-billion revenue for 2018, as many of its departments continue to pose higher collections.
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Publication:Business Mirror (Makati City, Philippines)
Date:Feb 15, 2018
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