BAGUIO CITY COLLECTS P2.360-B TAXES IN 2023; HITS 2024 1Q TARGET

April 26, 2024 Metro BLISTT

City plans to amend decades-old revenue code

BAGUIO CITY

The city government collected a total of P2.360 billion in taxes in 2023, surpassing its goal but lower than the P2.560
billion it generated in 2022. Local Treasury Operations Officer Jerry Guevara, said 2023 revenue collection was
affected by the decrease of city’s share in the national tax allotment (NTA) amounting to P201 million. And collection from Baguio Special Economic Zone also dropped to P177 million compared to P238 million in 2022.

For the first quarter of 2024, the city generated some P961 million in revenues. The amount came from business taxes, highest contributor , amounting to P345,106,320.58 followed by the National Tax Allotment (NTA) with P308,110,248.99, and Fees and other charges with P149,451,494.15. Actually, the city government has set a target
collection of P2,685,274,171.00 for 2024.

To enhance revenue generation, the treasury official said continuous initiatives, intensify investigations in
collaboration with the Business Permit and Licensing Division of Baguio, enhance social media information campaigns, and providing incentives. Regarding realty tax, they plan to conduct public auctions on properties with
delinquencies in the coming 2nd and 3rd quarter. Furthermore, Guevara brought up the proposal to increase business taxes, which was submitted in 2023 and is currently pending approval in the city council.

The Local Finance Committee stated in the previous year that this proposal entails a planned increase of 40 percent in business taxes, as mandated by the Local Government Code of 1991, and is set to be implemented this year.
Regarding this proposal, Guevara stated, “Actually our projected income, if we implement this, is around 103 million. We included this in the projected income in the budget. But if the Sangguniang Panlungsod does not approve this, we will remove the 103 million from the contingent on the business tax target.”

He also mentioned drafting a proposal ordinance regarding the rationalization of fees and charges, especially on garbage and sewerage, which will be submitted to the Sangguniang Panlungsod ng Baguio for review. The official added that city is now working on the rationalization of our fees and charges, especially on garbage and sewerage.
He also pointed that the city spend P220 million annually, however, our income is merely P38 million. As of now, the city government continues to adhere to current tax collection ordinances, with the revenues collected allocated towards pre-planned projects and expenditures.

Jether Adriel F. Cabanlong -UB Intern/ABN