Lapu-Lapu exceeds: Tax Collection Target

CEBU, Philippines - Through efficient tax collection, Lapu-Lapu City Government’s income exceeded by P946 million in 2009 – combining the P399 million internal revenue allotment (IRA) from the national government and locally sourced revenue.

A newly-released report from the Department of Finance-Bureau of Local Government and Finance (DOF-BLGF) showed that Lapu-Lapu City ranked third among all 15 cities in Central Visayas representing locally sourced revenue and IRA.

Cebu City ranked number one followed by Mandaue City.

OIC regional director Lorna Atega of DOF-BLGF, in her report, said the city real property taxes (RPT) collection defied expectations as it exceeded by 100.23 percent. The BLGF target on RPT of the city was P148, 282, 206 but it reached to P148, 621, 434.09.

The total business tax collection also reached P305, 744, 843.81 last year.

Business taxes are revenues collected from movies houses, community, corporate, professional, transfer and franchise taxes and delivery vans and trucks, and among others.

Tax collection efficiency rate, which measures a local government unit’s ability to collect taxes, is computed by dividing tax collection by the total revenue within a given period.

The report covering 2009 showed that the city’s IRA was P399, 274, 612.

 The IRA is the share of the local government units from the taxes collected by the Bureau of Internal Revenue.

Poor local government units (LGUs) depend heavily on their IRA share to finance their operational costs and the delivery of basic services.

Outgoing Mayor and congressman-elect Arturo Radaza said he is happy with the performance of the city treasurer’s office and other city department offices in tax collection under his nine-year stint at the helm of the city hall.

RADAZA ATTRIBUTED THE GOOD PERFORMANCE IN TAX COLLECTION TO MASSIVE INFORMATION AND COLLECTION EFFORTS.   (FREEMAN NEWS)