Tuesday, January 02, 2007 Local taxes to boost city's 2007 income By Lory Ann B. Bilbao
WITH the projected huge increase in the collection of taxes, the City Government's income is foreseen to reach P1 billion in 2007.
The calculations made by the Committee on appropriations chaired by City Councilor Joe Espinosa III, was noted as a "reasonable probability" by the members of the Local Finance Committee chaired by City Treasurer Katherine Tingson.
Espinosa, together with his members-Councilors Perla Zulueta and Eduardo Peñaredondo estimated that a total of P1,201,200,000 would be the income of the City Government for the whole year of 2007.That is 58.8 percent higher than the 2006 income-P756,043,397.
The Committee, in its report made after a series of budget hearings from November 2 to December 12, showed that the City's revenue would be enhanced by the city's big collections on local taxes.
They estimated that it would increase to 394,820,000 in the whole year of 2007 from only P347,520,000 during the year of 2006.
As shown, collections on business, franchise and real property taxes appeared to then increase next year.
The business taxes collections would rise to P156 million from only P136 million this year.
Next, the collection on franchise taxes from only P25 million into P28.5 million this year.
Then,on Real Property Taxes (RPT) from only P11.3 million would rise to P116 million next year.
Also, the collections on permits and licenses showed to be augmenting some more the total revenue of the city. The total estimated collections reached P10.03 million from only P8.285 million this year.
Building permit fees are to mount to P1.7 million from P1.5 million this year. Then, the mayor's permit fees from P1.5 million to also P1.7 million and collections on mechanical fee from P1 million to P1.5 million next year.
Notably, the city's service income on garbage fees, which increase into P22 million next year from P21 million this year, also augments the 2007 income. The total income on city's services fees was however projected to decrease into P32,640,000 from P33,400,000 in 2006. As shown, the tally was affected of the least foreseen fines and penalties in the same services in 2007, which was shown to only amount to P40,000 from the total of P40 million collected fines in 2006.
To add, business income would also help in the increase in the total income. The committee projected that a total of P 27, 360,000 would be collected in 2007 from only P26,745,000 this year.
The City's Internal Revenue Allotment (IRA) was reported to increase for 13.3 percent or from P43,456,603 from P326,543,397 in 2006.
Of the P1.2 billion, 45 percent of which or P362, 906,820 will go to Personal Services expenses, under which are expenses for salaries and wages of the employees including other pays, while P424.5 million would go to the city government's programs and projects and the rest for other non-office expenses.
