Davao City shoots for P10-B budget in 2020
June 04, 2019 - Tuesday 10:06 PM by Funny Pearl A. Gajunera
DAVAO CITY -- The city government of Davao is targeting to have a P10 billion budget for the year 2020 by intensifying the collections of the City Treasurer’s Office (CTO).
CTO head Erwin Alparaque said his office is now working on increasing the budget of the city from P8.8 billion this year to P10 billion next year.
Alparaque said the CTO is targeting to collect P2 billion from real property taxes, which had been increased by 30 percent this year following the revision of the Local Revenue Code.
“In business taxes we collected more than P1.3 billion as of the month of April and another P2 billion from real property tax is our target to collect given the increase of the real property tax,” he said.
Alparaque said he is optimistic the city will reach its target given the positive outcome from the Davaoeños who pay their taxes regularly.
“For this year we are targeting to collect P5 billion for local taxes and the rest will be coming from the Internal Revenue Allotment (IRA) to comprise the P10 billion target collection for the 2020 annual budget of the city,” he said.
The increase in real property tax comes 11 years after the last revision in 2008. The increase will be implemented in a staggered basis to help people adjust.
City Assessor’s Office head Jaime Adalin said the increase will be divided into three years.
“The tax scheme was implemented to help the taxpayers. We also lowered the assessment level. For residential properties, there is an increase of at least one to 10 percent depending on the classification of the residential area,” Adalin said.
For commercial properties, the increase is 60 percent, Adalin said, although the increase on commercial lots will depend on the deed of sale conducted.
Adalin said the biggest value based on deed of sale that they have checked is only P33,000 per square meter.
“We should refer the increase on commercial lot in the market value, but based on the law we need to check the actual deed of sale. I’ve read that some areas here in the city cost at least P120,000 per square meter but on our assessment, the biggest is just P33,000,” Adalin said.
He explained that since the increase is staggered, the 60 percent increase will be divided into three and will apply to a three-year period to complete the 60 percent increase.
“We are also taxing the idle land to encourage development in the area,” Adalin added.
The increase in taxes for idle land took effect in 2018.
The increase for residential land is .5 percent of the assessed value, while for agricultural land the increase is .75 percent. The increase for commercial land is 1 percent.
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