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Sunday, March 19, 2006
P16M hike in biz tax collection
Mandaue City expects an additional P16.6 million in business tax collection this year after imposing a 10 percent increase on business taxes and other fees and charges.
However, the real property tax for commercial and industrial properties will remain the same because the ordinance raising the assessment level for these kinds of properties is not yet in effect.
The City Council passed an ordinance late last year, increasing the assessment level of real property classified as commercial and industrial from 35 percent to 50 percent, starting Jan. 1, 2006.
This would have resulted in a slight increase in realty taxes for industrial and commercial properties.
No publication
However, the ordinance has not been published in a local newspaper yet, so the City Assessor’s Office and the Land Tax Division of the City Treasurer’s Office could not implement the increase.
The Local Government Code requires newspaper publication for local ordinances for it to become effective.
As for business taxes, Councilor Wenceslao Gakit, chairman of the committee on finance, confirmed that the City Government already implements the 10 percent increase on business taxes starting last January.
Ordinance
City Ordinance 99/051, also known as the Revenue Code for the City of Mandaue, provides that effective Jan. 1, 2006, all taxes, fees and charges under the ordinance shall increase by 10 percent without any further need of an enabling ordinance authorizing such increase.
Gakit said that with this, the City expects to collect P182.6 million in business taxes, other fees and charges this year, which is higher by P16.6 million than last year’s P166 million collection.
For 2005, the City collected P136 million in business taxes and P30 million in other fees and charges, said Gakit.
Assuming that the income of business establishments in Mandaue City will remain constant this year, then the City Government will collect P149.6 million in business taxes and P33 million in other fees and charges, or an increase of 10 percent.
This early, the Visayan Electric Co. is already asking authority from the Energy Regulatory Commission to increase its local franchise fee for customers in Mandaue City, starting January 2006, following the 10 percent increase in local franchise tax imposed by the City Government. (ROV)
For Bisaya stories from Cebu. Click here. (March 19, 2006 issue)
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