Makati gov't: No tax increase this year

MANILA, Philippines - Makati Mayor Jejomar Erwin Binay has reassured the city’s business community that the city will not increase taxes this year and will instead exercise “honest and vigorous” implementation of city ordinances to increase revenue, in line with its commitment to sustaining a healthy and business-friendly climate in the country’s financial center.

Binay made the statement in his speech before traders and brokers at the bell-ringing ceremony at the Philippine Stock Exchange trading floor, last Thursday to commemorate the city’s 344th Founding Anniversary.

Binay also announced the impending construction of the City Hall Annex that will group the city’s frontline agencies in one location for a more efficient delivery of services to stakeholders, including current and prospective investors.

The city, said Binay, will tap the country’s noted architects for the design of the annex to ensure the smooth flow of transactions and the comfort and convenience of clients.

“With the ASEAN economic integration just around the corner, we need to ensure that the City will be able to take advantage of its attendant opportunities.  So even as Makati remains the most financially abundant and progressive city in the country, our work does not stop,” he said.

Noting that since many of the businesses listed at the Stock Exchange have offices in Makati, as with many of the trading participants, their growth and vibrant activities are contributory to the continued progress of Makati.

“We also continue to count on the Philippine Stock Exchange's ingenuity and innovation to help advance the economic progress of the entire nation,” Binay added.

Since the Revised Revenue Code of Makati took effect in 2006, the city has not increased tax rates.  Yet, its revenues have continued to increase year after year, reaching P11.9-billion in 2013.  The city has also remained deficit-free for 27 years now.

To date, Makati continues to top other local government units in the country in terms of revenue collection from local sources and per capita income, and is one of the few localities that are not dependent on the Internal Revenue Allotment (IRA) from the national government.