THE Iloilo City government has launched a tax mapping project Wednesday to formalize the operation of unregistered business and to increase local revenue sources.

However, City Mayor Jerry P. Treñas allayed fears of the local business community, saying the tax mapping project will not in any way add to the current rate of business taxes.

For updates from around the country, follow Sun.Star on Twitter

Treñas said that collection of business taxes reached 61 percent after Typhoon Frank in June 2008 and is still higher by P5 million as compared to that in 2007.

The city is targeting P371 million collections in real property tax this year and has already collected P221.5 million as of June 30, 2009. Similarly, the target for business tax is P259 million in 2009, and the city has already collected P184 million from January to May this year.

City treasurer and tax mapping project coordinator Katherine Tingzon said the project is expected to help cover up the internal revenue allotment (IRA) shortfall expected to hit Iloio City by 2011 if there will be additional upgraded municipalities into cities in the Philippines.

Five evaluation teams will be fielded in 45 barangays in the city center as pilot areas of the project starting on Friday, July 3, until end of November 2009 to discover and evaluate the unregistered businesses operating without a permit, undeclared businesses operating under one business umbrella, and those with undervalued business income. The teams will conduct a comprehensive door-to-door and barangay-to-barangay evaluation of businesses.

Tingzon said the program will help neutralize operation of underground businesses and help establish legitimate business operations in the city.

The project will also gather data for the World Bank and Bureau of Local Government Finance, which helped finance the project under the Business Tax Enhancement System (BTEP) computerization program.