Makati’s revenues up by 5% in April

MANILA, Philippines - Revenue collection in Makati City was up by 5 percent last month compared to the same period last year, the city government reported.

Makati City Mayor Jejomar Erwin Binay said taxes paid by over 1,500 new entrants in the city’s business sector have driven up the city’s revenue collections by 5 percent from P7.55 billion in April 2013 to P7.95 billion as of end-April this year.

In a report to Binay, City Treasurer Nelia Barlis said new businesses contributed around P5.5 million in business taxes for a total of P4.04 billion in the first four months of the year.

For the same period, income from real property taxes made up the next highest collection at P3.16 billion, 8 percent higher than last year’s P2.93 billion.

Binay said he was optimistic that the city government will be able to surpass its target revenues for the year, as it consistently did for the past two decades.

“We remain firm in our commitment to sustaining a healthy investment climate in Makati and building its competitive advantage through constant innovation, making full use of modern technology,” Binay said.

Binay expressed confidence that the city government will have sufficient funds to implement its major programs and projects for the year geared toward a “Smarter Makati," giving priority to improving mobility, increasing connectivity, and building a safe, secure and livable environment.

Binay noted an increase in the number of banks, hotels, restaurants and importers that have secured business permits from City Hall.    

Meanwhile, other locally sourced revenue for the city also increased, with P388.5 million from miscellaneous fees and P84.4 million from economic enterprises. 

Makati is among the few local government units in the country that do not rely on the Internal Revenue Allotment from the national government. 

Since its new Revenue Code took effect in 2006, the city government has not increased its tax rates. Yet, its revenue collections have continued to increase each year, and it has remained deficit-free for 27 years now.