Makati hits 2017 revenue target in October
Even with two months to go before the end of the year, the Makati City government has already reached its full-year revenue target as of October, thanks in part to delinquent land and building owners who finally settled their dues.
According to a report by city treasurer Jesusa Cuneta, the country’s financial and business capital earned P15.5 billion in revenues from January to October this year.
This was six percent higher than this year’s revenue target of P14.5 billion. October’s collection was also 12 percent higher compared to the same period in 2016.
The report said the bulk of the revenues came from business taxes totaling P8.2 billion, nine percent higher than last year’s.
Cuneta pointed out that the highest increase in collection came from real property taxes—up 17.5 percent at P5.4 billion. This was boosted by the P727.76 million collected from delinquent realty tax payments and penalties.
As early as April, Makati City had already attained 70 percent of its annual revenue target, collecting almost P10.2 billion or nine percent higher compared to the same period in 2016 even without raising taxes.
Mayor Abby Binay earlier ordered the realty tax division of the city’s finance department to issue demand letters to the remaining property owners with outstanding obligations. Their names will be released in a list to be published by city hall in December.
The satellite realty tax payment centers set up in barangays also helped boost tax collections, generating at least P90 million.
Other local revenue sources were fees and charges (P685.5 million), economic enterprises (P186.4 million); and other income sources, including the internal revenue allotment (P886.8 million) and shares from the Philippine Economic Zone Authority (P226.2 million) and Philippine Amusement and Gaming Corp. (P6.5 million).
Makati offers a 10-percent discount on real property taxes paid annually. There is also a five-percent discount for quarterly payments made during the first 20 days of the quarter.
Annual real property tax payments made after March, however, are charged an eight-percent penalty, while late quarterly payments are slapped with a two-percent fine per month.
