City’s mid-year revenues
hit P2 billion mark
MYNEWS By ROGER M. BALANZA
Davao City’s tax collection at mid-year netted P2 billion, leading to rosy speculations annual revenues for 2007 could breach the P4 billion mark.
In a City Treasurer’s Report released last week, total tax collection ending August was pegged at P2.1 billion, nearly a fourth of the revenue propped up by Business Tax.
The large Business Tax haul could be credited to new investors lured to pour capital by current efforts to sell the city as an investment haven.
Tagged as one of few Billionaire Cities in the country by the Bureau of Internal Revenue, the tax haul consisted of P1.2 billion in Internal Revenue Allocation (IRA) or nearly half of the mid-year tax bonanza.
Earlier, City Administrator Wendel Avisado said a more efficient tax collection system backed by partial computerization set in place this year could push annual revenues for 2007 to the P4 billion mark.
If the targeted tax figure is realized by year-end, 2007 would be a landmark in the tax collection efforts with the local government breaching for the first time the P4 million ceiling. The past three years, annual revenue had tangoed at the P3 billion to P3.5 billion levels, with city economic planners pushing incentives and benefits to lure investors in a bid to push revenues higher.
Local business had credited Mayor Rodrigo Duterte’s peace and order campaign and tax incentives to inflows of new investors for the largest contribution ever by Business Tax, which accounted for P414 million or about a fourth of the mid-year tax haul.
In the report released by City Treasurer Rodrigo Riola, the other big tax haulers were Real Property Tax (P128.8 million), Franchise Tax (P38.2 million), Markets (P31.9 million) and Other Services Tax (P31.9 million).
Pitching much-needed dough to up the city coffers are Permit Fees at P29 million, Other Permit Fees and Licenses also at P29 million; with Amusement Tax and Community Tax each contributing P21 million.
The tax pile is ballooned further by Garbage Tax, implemented only last year, which netted P 21 million.