MANILA, Philippines — While tax collections were expected to decline this year because of the pandemic, the local government of Makati City generated more than P18 billion in tax revenues, breaching its P17.8 billion target for the whole year.
Based on a report from city treasurer Jesusa Cuneta, Makati collected P18.15 billion as of November, exceeding by 3 percent its revenue collections during the same period last year.
The bulk of collections of the country’s financial district came from business taxes amounting to P9.5 billion, and real property taxes worth almost P6 billion.
While a number of business establishments closed down due to the lockdowns, records from the business permit and licensing office showed that as of Dec. 23, there have been 2,789 new business registrants, and 35,836 that renewed their permits.
The new enterprises recorded P29.8 billion in capital investments, while total gross sales of businesses that renewed their permits reached nearly P1.6 trillion.
In a statement, Mayor Abby Binay said she was relieved to learn that even with the restrictions imposed on businesses, Makati was able to reach its revenue goal even before the year ended.
“This encouraging development gives us good reason to be optimistic about brighter prospects for business and the local economy in 2021,” she added.
The city also derived income from local revenue sources and other sources, including fees and charges (P609.2 million), and economic enterprises (P135.1 million).
At the onset of the pandemic, the Makati launched technology-abled programs to make services offered by the city government still accessible to its residents and taxpayers.
Last June, the city established the Makatizen Online Assessment and Payment Portal through which residents and business owners can pay their real property and business taxes, using their smartphones or laptops. Thus, they no longer need to line up and observe physical distancing at City Hall.
Last September, Mayor Abby announced the launch of the P2.5-billion Makati Assistance and Support for Businesses program, aiming to pump-prime the local economy and support local merchants to help sustain and create jobs for residents.
Through an online portal, Makati-registered businesses can apply for grants ranging from P10,000 up to P100,000, depending on the type of business and number of employees who are Makati residents.
The cash grant shall be released directly to the employees and suppliers, as payment for their salaries and goods, respectively.