Makati City is off to a good start this year after it already surpassed its January 2023 business renewal assessment level as of Tuesday, Jan. 23, Makati City Mayor Abby Binay said.

Mayor Abby Binay

With over 4,000 businesses still lined up to renew their business permits until the Jan. 31 deadline, Binay hailed the city's P6,303,347,208.45 total assessment value for business permit renewal as of Jan. 21. This is 5.55 percent higher than the P5,972,038,505.66 recorded in January 2023.

“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,” Binay said.

According to the 2023 revenue report from City Treasurer Jesusa Cuneta, Makati has breached its 2023 revenue target by 39 percent, reaching P24,870,228,884.28 on Dec. 31. 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,” the mayor noted.

Makati's Business Permit and Licensing Office (BPLO) said a total of 4,842 new businesses were registered in 2023, and 35,872 renewed their business permits. The new businesses have brought P31.58 billion in capital investments, while total gross sales of registered businesses reached P1.6 trillion.

Binay explained 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.

This 2024, the city government has set its total revenue target at P18.3 billion, up by 2.8 percent from its 2023 revenue target of P17.8 billion.

Other business-centered initiatives

The Binay administration continues to be proactive in introducing new reforms and programs to entice both local and international business owners to invest in the city, opening new opportunities to the public as well as increasing Makati's revenue for the implementation of its programs for the benefit of Makatizens.

During her State of the City Address (SOCA) before members of the Rotary Club of Makati, Binay announced the city's plan to reduce real property tax (RPT) and other local taxes, ordering a comprehensive review to determine the feasibility of lower tax rates, citing the savings accrued to the city from subsidies previously given to the 10 EMBO barangays which are now placed under the jurisdiction of Taguig City by the Supreme Court (SC).

"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," the mayor said.

She had also requested the suspension of the imposition of amusement tax in the city in order to boost tourism and support local artists, which became possible through the City Council's approval of City Ordinance No. 2023-269.

The city government also gives free lunch packs to the first 200 "early bird" clients renewing their business permits at the City Hall since Jan. 2. This is aside from the free free-flowing brewed coffee and biscuits available for all clients.

Frontline city government offices involved in the issuance of business permits have also extended their business hours on weekdays and weekends to accommodate taxpayers. Business renewal assessment has also been extended until Jan. 28, while payment of business and real property taxes has been extended until Jan. 31.