Makati City Mayor Abby Binay announced that the 23 city barangays will be getting an additional P10 million share each from the city’s basic real property tax (RPT) collection following the transfer of the 10 EMBO barangays to Taguig's jurisdiction by the Supreme Court (SC).

Mayor Abby Binay

Aside from the additional P10 million, the Department of Budget and Management (DBM) also confirmed an average increase of 6.20 percent in their final National Tax Allotment (NTA) allocations this year.

“As expected, the exclusion of the 10 EMBO barangays has resulted in bigger allocations for each of the 23 remaining barangays from the city’s basic RPT collections and the NTA. I am exhorting all barangay leaders in the city to ensure that these added resources will be optimized for innovative, high-impact programs and services aligned with Makati’s vision of an inclusive, sustainable and resilient future,” Binay said.

According to the city's Accounting Department, a total of P10,085,043.77 has been added to the RPT share of each of the 23 barangays, equivalent to an average increase of 17 percent after the 10 EMBO barangays composed of Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Northside, Southside, and Rizal were excluded from the 50-percent equal sharing.

Based on Chapter 7, Section 271 (b) of the Local Government Code, 70 percent of the proceeds from basic RPT collections shall accrue to the general fund of the city, while 30 percent shall be distributed among the component barangays of the city where the property is located.

The 30-percent share is further broken down as follows: 50 percent shall accrue to the Barangay where the property is located, while 50 percent shall accrue equally to all component barangays of the city.

Meanwhile, the DBM has reported an average increase of 6.20 percent in the final NTA allocations of the 23 Makati barangays, with total NTA allocation this year amounting to P315,962,935. This is higher by P18,458,197 than the previous year’s allocation.

The mayor had earlier reported that Makati breached its 2023 revenue target by 39 percent, reaching P24,870,228,884.28 last Dec. 31 with the bulk of income coming from Business Tax with  P12,534,245,251.42, or a 37-percent increase over 2022.

The next biggest contributor was RPT with 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.

The NTA, which replaced the previous internal revenue allotment (IRA), is distributed among LGUs – provinces, cities, municipalities, and barangays – using a specific formula. It takes into account population (50 percent), land area (25 percent), and equal sharing (25 percent). 

On Jan. 30, Binay said a total of P9,199,756,000 has been allocated by the Makati City local government for its social services this year which is nearly half of the city's P19.70 billion allocated budget for the year as she assured Makatizens that they can look forward to enhanced benefits and programs this 2024.