Makati tops 2013 revenue goal, posts P11.9B

MANILA, Philippines - The Makati City government expressed optimism that it would be able to implement a number of capital-intensive projects this year and still sustain its widely acclaimed social programs, after its total revenue collection reached P11.9 billion as of end-December, exceeding the annual target by 4.9 percent.

Makati Mayor Jejomar Erwin Binay said 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,” he said.

Binay said the city’s healthy financial standing assures 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.

“Thanks to our dutiful taxpayers, loyal traders and growing number of new investors, our city remains financially stable and we have again surpassed revenue targets for the year. Our constituents and stakeholders can look forward to better services and sustainable initiatives from the city government this 2014,” Binay said.

Binay also noted that Makati’s share of the Internal Revenue Allotment (IRA) in 2013 has further dropped by seven 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,” he said.

Based on the report of City Treasurer Nelia Barlis to the mayor, the bulk of collection came from local sources led by Business Tax with P6,169,057,756.05, which is seven percent higher than 2012. The city’s next biggest local revenue source is Real Property Tax, with P4,165,911,456.72, higher by one percent than the previous year’s total.

The increase has been attributed to strong investor confidence, made evident by more new businesses and high rate of renewals with the Business Permits Office. 

According to the latter, total registrants rose from 32,020 in 2012 to 33,116 as of end-December. 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 this year, the city government has prioritized a number of infrastructural projects, including the Citywide CCTV Network Project, the rehabilitation and upgrade of Makati C3 (Command Center), construction of an evacuation building for evacuees and warehouse for equipment and relief goods during emergency, Flood Control Program involving the installation of flood measuring devices with closed-circuit television in flood-prone areas and creeks, Phase III of Ospital ng Makati in District 1, drainage upgrading and road improvement program, and construction of new school buildings, among others.

For the same comparative period, the city’s collection from miscellaneous fees and charges increased by six percent, from P605.31 million to P642.22 million.

For the past 27 years, Makati has maintained its deficit-free status.