Sunday, January 13, 2008 Province overshoots income target in ‘07
THE Cebu Provincial Government exceeded its target revenue for last year by almost P200 million, collecting about P1.421 billion.
The Province had set P1.09 million as its target for tax revenues, but collected P1.25 million.
Assistant Provincial Treasurer Manny Guial said the biggest contributor to the Province’s income was the Internal Revenue Allotment (IRA).
In 2007, it projected P534 million as its IRA share, but it was able to get P677 million instead.
The Province also earned P32 million from real property taxes and P11 million from transfer taxes.
Miscellaneous revenues, which include income from interest on deposits and treasury bills, amounted to P100.5 million, although this was below its target of P101.6 million.
The Capitol targeted to earn P100 million in interests from its deposits and treasury bills, but only had P59.1 million last year.
Guial explained that their deposits and T-bills only earned three to four percent in annual interest, unlike in the past when these deposits earned between six and seven percent.
The Province also projected earnings of P20 million from the Cebu South Bus Terminal but it was able to collect P22.6 million. About half of that income came from landing and parking fees, at P11.7 million. It also earned P6.9 million in receipts from the lease of properties and its miscellaneous income hit P3.8 million.
From district hospitals, the Province earned P46.9 million, or P16.9 million more than its target.
For 2008, the Capitol is targeting an income of P1.4 billion. But Guial admitted they are expecting a decrease in the real property tax income because of the conversion of three towns into cities last year.
Towns converted into cities will no longer have to remit real property taxes to the Provincial Government.
Carcar, Naga and Bogo, now cities, were among the towns that had the biggest contributions to the Capitol in terms of real property taxes.
The Cebu Provincial Board has approved an ordinance setting the new schedule of fair market values of real properties in the province, which means owners of real properties will have to pay higher taxes.
The increase will be implemented in 2009. The new schedule of values has increased the base value of real properties by an average of 50 percent. (MBG)
