The Makati City government exceeded its business renewal assessment level last year, with over 4,000 businesses expected to renew permits until Jan. 31.
The total assessment value for business permit renewal reached more than P6.3 billion as of Jan. 21, a 5.5 percent increase from the total assessment value of P5.9 billion same period last year.
“With over a week before the 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,” said Mayor Abigail Binay.
Citing a report from the office of City Treasurer Jesusa Cuneta, Binay said the city breached its 2023 revenue target by 39 percent, reaching P24,870,228,884.28 last Dec. 31. She added 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,” the city chief executive said.
Records from the Business Permit and License Office showed that 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.
Mayor Binay 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 in 2022. Overall, the city’s local revenue sources posted a 22 percent increase and exceeded the 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 local government aimed to meet a total revenue of P18.3 billion, up by 2.8 percent from its 2023 revenue target of P17.8 billion.
Binay recently announced that her administration is eyeing to reduce real property tax and other local taxes. 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 villages, now under the jurisdiction of Taguig City.
Aside from showing appreciation for Makati’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, she said.
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.
Since Jan. 2, some 200 ‘early bird’ clients renewing their business permits at City Hall have been given free lunch packs daily, aside from free-flowing brewed coffee and biscuits available for all clients.
Frontline city government offices involved in the issuance of business permits have also extended business hours on weekdays and weekends to accommodate taxpayers.
Business renewal assessment has been extended until Jan. 28, while payment of business and real property taxes has been extended until Jan. 31.