THE Business Permit and Licensing Office (BPLO) of Mandaue City has set a target of P1 billion in business tax collection for January 2025.
As of Thursday, Jan. 16, 2025, the ongoing Business One-Stop Shop (Boss) initiative had already generated about P200 million, according to BPLO head August Lizer Malate.
Malate added that this initiative is part of the office’s broader efforts to streamline the tax collection process and make it more convenient for business owners.
Since the implementation of the Boss, Mandaue City’s business tax collection has seen a significant annual increase.
In 2017, the City collected P685 million, which grew to P830 million in 2018, marking a 21.2 percent increase.
By 2019, collections reached P987 million, an 18.9 percent increase from the previous year.
The City hit the P1.1 billion mark in 2020, an 11.5 percent increase, and maintained this level in 2021 despite
economic challenges.
In 2022, collections rose to P1.2 billion, up by 9.1 percent, and in 2023, the figure jumped to P1.4 billion, reflecting a 16.7 percent increase from the previous year.
By 2024, tax collections reached P1.5 billion, showing a steady 7.1 percent growth.
A business tax refers to the taxes businesses must pay as a usual part of their business operations.
Whether a business is a sole proprietorship, partnership, part of a limited liability company, or a corporation, it is responsible for adhering to the tax regulations of the state where it belongs.
Mandaue City currently has 16,000 registered business establishments, with the majority involved in wholesale and retail, transportation, real estate, and manufacturing.
Malate said that with a few weeks left in the month, the BPLO is urging business owners to take advantage of the Boss system to ensure they meet the Jan. 20 deadline for tax payments.
The submission deadline for permit renewals is set for Jan. 18, providing the office with adequate time to assess the applications.
Malate emphasized that there would be no extensions for the renewal process this year, a departure from previous practices where extensions were often granted as long as businesses submitted their applications on time.
“In previous years, we allowed some flexibility, but with the increasing number of businesses, it’s crucial to adhere strictly to the deadlines. We have around 16,000 to 20,000 businesses to assess, and our assessors are already overwhelmed,” said Malate in Cebuano.
Malate said that they would not grant any extensions after the deadline, it is high time to implement the rules strictly, especially in collecting taxes. Businesses that fail to meet the Jan. 20 deadline will face penalties, including a surcharge of 25 percent and an additional 2 percent per month of delay.
Malate clarified that even a day’s delay past the deadline would incur these penalties, adding to the importance of timely compliance.
The Boss setup aims to expedite the processing of business permits and tax payments, significantly reducing the bureaucratic delays that have often hindered efficient tax collection.
Malate said that despite the limited personnel, the BPLO remains confident in managing the workload, as it has done in past years.
However, the office acknowledged the challenges, especially given the potential for complaints and questions from business owners regarding assessments.
One notable innovation this year is the integration of barangay clearance into the process for businesses in Barangay Subangdaku.
Last year, payment delays resulted in penalties for some businesses, a scenario the BPLO hopes to avoid this year by strictly enforcing the deadlines.
Malate reiterated that any extensions for the renewal process would require an ordinance, signaling a firm stance on maintaining the January deadlines. / CAV