The Makati City local government announced on Tuesday, July 25, that it has already reached 95 percent of its 2023 revenue target after successfully collecting over P16.88 billion in the month of June.
Makati City Mayor Abby Binay said the city collected a total of P16,876,811,971.56 as of June 30. This is equivalent to 95 percent of its revenue target for 2023 amounting to P17.83 billion.
“It is only the middle of the year, yet we have nearly achieved our full-year revenue target, with a 22-percent increase to boot. Clearly, Makati’s economy has bounced back and is stronger than ever,” Binay said.
According to City Treasurer Jesusa Cuneta, the bulk of revenues came from Business Tax with a total of P9,446,943,668.74 collected. This is 44 percent higher than the same period last year and covers 95 percent of the P9.9-billion target for the year.
It also includes around P3.7 million collected through the Makatizen Online Assessment and Payment Portal.
The local chief executive attributed the increase to the resumption of normal operations of business establishments and the opening of new businesses as well.
“Most business establishments in the city are now back to operating at full capacity, indicating that we are definitely back in business. We also have more new ventures setting up shop in the city, bringing in more capital investment that boosts the local economy,” Binay noted.
The mayor also explained how the city has sustained its position as the country’s premier investment destination through good governance, as a result of reforms and innovations undertaken by her administration for the past six years.
“Having achieved greater transparency and efficiency, Makati continues to enjoy strong investor confidence. We also take pride in recently obtaining, for the sixth straight year, an unmodified audit opinion from the Commission on Audit,” she explained.
As of July 19, 2023, Makati City has registered 2,782 new businesses with a combined capital investment of over P20 billion based on the records of the Business Permit and Licensing Office (BPLO).
"In the same period, a total of 35,116 businesses have renewed their business permits and registered total gross sales amounting to P1.65 trillion," the city government said.
The City Treasurer’s report further showed that Real Property Tax collection as of end-June amounted to P5,434,290,527.49, reflecting a six percent increase from last year. It is also 113 percent of the P4.8-billion target for the year while Realty taxes paid online amounted to P8.2 million.
Other local revenue sources included Fees and Charges with P623.3 million, and Economic Enterprises, P186.2 million. From other sources, the city got P835.8 million in National Tax Allotment (NTA), P159.1 million as share from Economic Zone (PEZA), and P191 million from Interest Income.
Binay stressed that the city’s financial stability is key to the effective implementation of its trendsetting social programs on public health, education, and social welfare.
"This year, the city has earmarked P3 billion for public health programs and around P1.1 billion for the welfare of public school students. For social welfare and development, the city has allocated around P929 million, which includes P191.7 million for the cash gift of Blu Card members, P49.5 million for their free birthday and anniversary cakes, P20 million for their free movies, and P6.6 million for burial assistance. Other allocations include P120 million for PhilHealth ng Masa subsidy, P21.2 million for emergency assistance to individuals in crisis, and P457 million for the annual gift giving," the local chief said.
Makati continues to be among few local government units in the country that are not dependent on the NTA (formerly Internal Revenue Allotment or IRA).