Mayor Estrada raises taxes, gov’t fees just 5 months into office

Will Manila Mayor Joseph Estrada remain popular following his signing into law of measures that will lead to a hike in taxes and government fees?

But if it’s any consolation to residents, city officials said the additional revenues would be used to improve basic services, particularly healthcare.

Just a little over five months since he assumed his post, Estrada approved on Tuesday three major fiscal measures expected to raise an additional P3 billion in revenues for the cash-strapped city government.

In the presence of department heads and the city council, he signed into law the P9.8 billion city budget, the new revenue code and the revised schedule of land valuation.

“So much is expected of me but my hands are tied. Hopefully, the reassessment of real property valuation will help us address the city’s financial troubles,” Estrada said, citing among problems the P3.5 billion budget deficit and P670 million in unpaid power and water bills he inherited from his predecessor.

“This is historical; the fastest approved budget in so many years,” Vice Mayor Francisco Domagoso said as he added:  “At the end of the day, these increases will go back to the public in the form of social services.”

Proponents of the new tax code and land valuation estimated that the adjustments would add P3 billion to the city government’s annual collection.

Manila is currently using the 1993 revenue code after the Supreme Court nullified an amended code during the time of then Mayor Lito Atienza on a technicality.

Domagoso said the fees charged by the city government were still lower compared to that of other local governments in Metro Manila as the newly passed revenue code was adjusted only to the year 2000 level.

On the other hand, the city’s market value of lands was last updated in 1997.

Councilor Bernie Ang said the budget reflected the city government’s continued support for social services such as healthcare and education as it ensured funding for the six public hospitals and two city colleges.

According to Ang, the city hospitals will be turned into specialization centers to improve their services.

“Equipment and medicine will be provided according to specialization. Let’s say Sta. Ana Hospital will be the heart center of Manila while Gat Andres (Bonifacio Memorial Medical Center) will be turned into a kidney center,” he said.