Despite being stripped of ten barangays Makati City is riding high on P6 billion worth of business renewal this January.
This as Makati Mayor Abby Binay yesterday revealed the city government has already surpassed its January 2023 business renewal assessment level, while there are still over 4,000 businesses expected to renew their permits until the deadline on 31 January.
The Business Permit and Licensing Office report showed that total assessment value for business permit renewal has reached P6,303,347,208.45 as of 21 January, which is 5.55 percent higher than total assessment value in January 2023 amounting to P5,972,038,505.66.
“With over a week before deadline, an even higher increase rate is inevitable by month-end. This is great news that augurs well for our fiscal stability for the rest of the year. It looks like we are going to surpass again this year’s revenue target, just as we did last year,” Mayor Abby said.
The 2023 revenue report from City Treasurer Jesusa Cuneta, showed the city breached its 2023 revenue target by 39 percent, reaching P24,870,228,884.28 last 31 December. It further cited that local revenue sources comprised the bulk of collections, led by Business Tax with P12,534,245,251.42, posting a 37-percent increase over 2022.
“We are grateful to the Makati business community for its unwavering support as it remains the biggest contributor to the city’s revenues. Our dutiful corporate Makatizens have been our steadfast and reliable partners in keeping the local economy resilient and even more vibrant today,” Mayor Abby said.
According to records of the BPLO, 4,842 new businesses were registered in 2023, and 35,872 renewed their business permits. The new entrants brought P31.58 Billion in capital investments, while total gross sales of registered businesses reached P1.6 Trillion.
The mayor said the next top local revenue source in 2023 was Real Property Tax, which reached P8,705,282,414.83 or nearly seven percent higher than 2022. Overall, the city’s local revenue sources posted a 22-percent increase and exceeded target by 44 percent in 2023. Other local sources included Fees & Charges which amounted to P839,906,201.40, and Economic Enterprises with P365,774,793.10.
For 2024, the city has set its total revenue target at P18.3 Billion, up by 2.8 percent from its 2023 revenue target of P17.8 Billion.
Mayor Abby has announced her intent to reduce real property tax and other local taxes. During her State of the City Address before members of the Rotary Club of Makati, the mayor divulged that she has ordered a comprehensive review to determine the feasibility of lower tax rates, citing the savings accrued to the city from subsidies previously given to 10 embo barangays.
Aside from showing appreciation for the city’s loyal taxpayers, the move is also intended to create a more business-friendly environment that provides relief to entrepreneurs and sets the stage for sustained economic development in the city, according to the mayor.
Moreover, the Sangguniang Panlungsod through City Ordinance No. 2023-269 recently approved the request of the mayor to suspend the imposition of amusement tax in the city in order to boost tourism and support local artists.