Taguig revenue up by P2.92B despite outmoded tax code
Despite substantial increase of P2.92 billion in its revenue in 2018, the Taguig City government has yet to maximize its revenue potential through an increase in real property taxes and other fees and taxes, the Commission on Audit reported Friday.
Under the previous administration, the city government’s net increase in revenues was placed at 40.68 percent in 2018 compared to the previous year, according to the 2018 COA audit report.
In her last year as mayor in 2018, Lani Cayetano, now the city’s congressional representative, was able to post huge increases in 16 revenue sources compared to the previous year.
Among these increases are in the collection of fines and penalties (1,451.5 percent), tax on delivery trucks and vans (8,395.2 percent), interest income (133.86 percent), and real property tax (60.66 percent).
“Income from business taxes registered a remarkable increase of P1,996,025,263 or 52.48 percent collection with that of the previous year,” COA said.
Business tax collection in 2018 totaled P5,799,271,614 while the 2017 total was P3,803,246,351, according to the report.
State auditors, however, said the city government must continue maximizing its revenue-raising authority by updating or increasing tax impositions on all real property and other fees as mandated under the Local Government Code.
“Tax rates used are no longer appropriate in the current times and can have an impact in the increase in revenue generation,” the COA said.
The report noted that the city government’s tax efforts were based on the outmoded Revenue Code of Taguig passed by the city council in 1993.
Under the law, local government units must adjust taxes every five years.