After 20 yrs, Manila raising business tax, fees, land values

After nearly two decades, the Manila city government is set to increase local taxes, fees and other charges with the passage on second reading of two measures, one updating its revenue code and the other adjusting the valuation of real properties.

Both measures are expected to generate additional collections of around P3 billion a year, according to their proponent in the city council.

The amended revenue code would increase by 10 percent business taxes, regulatory fees and charges for permits and local civil registry records like birth certificates.

While there would be no increase in the tax rate for real properties, the city government would be updating its schedule of fair market values.

Both draft ordinances are authored by Councilor Raymundo Yupangco, chair of the committee on ways and means.

According to committee reports on both proposals, the Office of the Mayor agreed that these measures to increase revenues were necessary to defray the expenses of the city government and fund the delivery of basic social services.

At present, Manila uses a 20-year-old revenue code. A new code was passed in 2000 under then Mayor Lito Atienza but was nullified by the Supreme Court for not meeting publication requirements, forcing a return to the 1993 code.

The market value of lands, on the other hand, was last updated in 1997. The City Assessor of Manila came up with the new schedule after a meeting with counterparts in the neighboring cities of Caloocan, Quezon and San Juan, the committee reports said.

Councilor Joel Chua explained that while the tax rate would not be raised, the updated valuation would still result in higher payments.

“It’s wrong to say that we raised the real property tax, although that is the effect. And we came up with measures to cushion the impact. It’s really steep because it wasn’t updated for the past 17 years,” Chua said.

“We even lowered the assessment levels for residential properties,” he said.