CBO eyes P70M revenues in 2013-A A +A
Sunday, January 13, 2013
THE City Building Office (CBO) is eyeing to close the year 2013 with at least P70 million in revenues from building fees, an official said Friday.
CBO chief Jaime Adalin, in an interview, told reporters that the P70 million target is a little higher from what they originally proposed at P67 million to the Local Finance Committee in a deliberation held in November of 2012.
This, after realizing an upsurge in real estate industry last year wherein many property development giants like Ayala Land Inc. (ALI) arrived in the city with a promise to erect towering condominiums in few years' time.
Adalin, meanwhile, added that the official target for 2012 was P51.2 million, but increased to P65 million as a "challenge" posed by the committee to CBO.
Although the total 2012 target collection is yet to be released this week, he said the target has already been surpassed in November 2012 with P66.7 million in collection revenues.
"Ang projection mag-increase, (The projection increases) especially on the investment side. It will take effect this year," he said.
The official is also optimistic that they will hit, or even surpass, the target collection for 2013 now that those establishments previously exempted from regulatory fees such as building permit applications and zoning permit fees have to pay taxes.
"Daghan kaayo og building permit nga gina-process (There are many building permits that are being processed)," he said.
Most of the sources of revenue collection of CBO are from residential, commercial, and industrial projects.
It can be recalled that Davao City Investment Promotions Center (DCIPC) chief Jason Magnaye said the city has no authority to impose tax exemptions, as it is not congruent to the national law.
Adalin echoed the same citing Presidential Decree (PD) 1096 of the National Building Code of the Philippines, in which not a single provision has been stated allowing a local government to impose tax exemptions for new investors.
Despite the lifting of tax exemptions, Magnaye said this will not stop investors from coming into the city nevertheless.
On the other hand, Adalin said the Aeon Towers was already issued with building permit in November last year and is now allowed to break ground for their condominium project.
Based on the record, the high-rise mixed use condominium will be comprised of 33 floors with a total project cost of P2.764 billion.
Published in the Sun.Star Davao newspaper on January 14, 2013.