Tax collection increases by 26 percent

THE Mandaue City Treasurer’s Office has collected P236 million in business taxes and registration fees as of Jan. 25, an increase of 26 percent from last year’s collection.

The City’s intensive tax mapping contributed to this increase, said lawyer Jamaal James Calipayan, the mayor’s executive secretary.

The City collected P187 million during the same period last year.

Some 8,000 businesses in Mandaue operated without a business permit or failed to renew their permits last year, Calipayan said in an interview with reporters yesterday.

He said more than 2,000 new businesses applied for a permit this year.

Calipayan said the increase in the administrative penalty for businesses who failed to comply with regulatory permits from P500 to P5,000 also helped the City increase its collection.

A business establishment is given 60 days, after the approval of its permit, to comply with other requirements such as sanitary permit, fire clearance and employees’ registration with the Social Security System.

An ordinance allows the City to impose a penalty of P500 to P500 on delinquent businesses.

“This is to compel registered businesses to comply with regulatory requirements and this will redound to the benefit of the constituents,” Calipayan said.

In an earlier interview, City Treasurer Regal Oliva said the City Legal Office will close down businesses that ignore the City’s demand letters to renew their permits on Feb. 1.

Oliva said his office sent about 1,000 demand letters last year. The renewal of business permits ended last Jan. 20.

Though a significant number of businesses have yet to pay their taxes, Oliva said the City remains “liquid”, with cash on hand amounting to P1.2 billion.