Thursday, July 31, 2008 CH records hike in tax collection By Linette C. Ramos Sun.Star Staff Reporter
CEBU City Hall reported a 4.68 percent increase in tax collection for the first half of the year, compared to the same period last year.
However, real property tax collection decreased by 10 percent.
From January to June this year, the City Treasurer’s Office (CTO) collected P1.29 billion in taxes, or a 4.68 percent increase from last year’s P1.23 billion.
The CTO also reported that of the amount collected, some P796 million has so far been spent for personal services, maintenance and other operating expenses, capital outlay and debt services.
For 2008, the CTO has an estimated income of P2,646,536,546 and estimated expenses of P2,554,778,743. Of the amount, P839,411,753 will go to debt servicing for the South Road Properties (SRP).
Business and other taxes, regulatory and permit fees, collections from markets and slaughterhouses and the collection of the City’s share from economic zones also increased during the period.
Assistant City Treasurer Tessie Camarillo explained that real property tax collection decreased by 10.54 percent because of the adjustments in the real property tax impositions, which took effect in 2006.
Tax rates were further reduced in 2007, when residential property tax was lowered from four to two percent and agricultural property tax was reduced from 8.5 to 4.5 percent.
“What happened was that some taxpayers paid their dues in advance so there was an excess amount, which was considered as tax credit for 2008, meaning some of them did not have to pay for 2008 or only paid a minimum amount,” Camarillo told Sun.Star Cebu.
Collections from bus terminals from January to June this year also decreased by 11.57 percent compared to the same period last year because of unpaid taxes from jeepney and V-Hire terminals operating in the city.
On the other hand, regulatory and permit fees collection increased by 24.16 percent because more business establishment owners registered their businesses, there were
more renewal of permits and an increase in business permit applications, said Camarillo.
The City’s share from economic zones also increased by 51.54 percent, or from P4,227,363.08 for the first half of last year to P8,723,532.80 to the same period last year.
After a five-year tax holiday, several information technology (IT) firms and other offices at the Asiatown IT Park are now paying two percent of their net income to the City Government, which explains the increase.
From the Asiatown IT Park alone, the City has collected P5.4 million in revenue share for the first six months this year.
Earlier, City Treasurer Renee Empaces said that they hope to increase tax collection this year by 50 percent, or from last year’s P2 billion to P3 billion.
But based on the target collection of P2.65 billion, the CTO has so far collected 49 percent.
