City earns P81M more from tax collection-A A +A
Tuesday, February 4, 2014
ENFORCING requirements and collection scheme following the revenue code of Cagayan de Oro City has increased the tax collection by P81 million in January this year compared with January 2013.
“As of January 30, we are P81-million higher than the collections made last year,” City Treasurer Glen Bañez said.
Bañez added that as of January 31, the number of business permits has also risen, with around 19,000 businesses renewing their permits.
“We’re hoping that this year it will increase,” he said, adding such could help the city meet the target collection this year.
Bañez said the strict enforcement of the requirements in tax collection is one factor that helped increased the city’s tax revenues.
“Basically, we have tightened our procedures -- we asked for the necessary documents to get the real income of the businesses in the city,” said Bañez.
He added that the “tight” scheme on collecting taxes was based on the law that it is written in the revenue code.
2014 Executive Budget
When asked if the collections would be used should the annual investment plan (AIP) be disapproved, Bañez said the collected revenue would be used for the reenacted budget since the City Council is yet to either approve or disapprove the 2014 Executive Budget.
“If we have recurring expenditures we can use this because the 2014 budget is yet to be approved,” Bañez said.
He said the budget last year is the same with the budget this year minus the capital outlay and special projects.
He added the City Hall is not allowed to implement supplemental budget yet, but the supplemental budgets of last year can be funded for use this year.
Meanwhile, Councilor Teodulfo Lao said the AIP has been returned to the City Development Council (CDC) for “upgrades” in some of its items.
During the City Council’s session on January 27, the approval of the AIP was deferred because it lacks program of work (POW) among others.
Bacal is requiring submission of additional documents for his committee to further study the AIP.
He added the CDC would submit the AIP to the City Council after doing some changes in the documents and complying with the requirements.
“If the AIP complied with all the requirements and yet the city council will not approve it, then the reasons behind the deferment must be politics,” Lao said.
Sun.Star tried to get a statement from one of the business groups in the city regarding the increase on the collection, but they declined to give any comment.
Some businessmen in the city have been complaining of the relative increase in their business taxes due to the “tight” collection scheme of the city treasurer office.
Published in the Sun.Star Cagayan de Oro newspaper on February 04, 2014.