Erap shoots down 40% property tax hike

MANILA residents and businessmen can finally take a breather after Mayor Joseph Estrada decided against increasing the city’s real property taxes for this year.

In a surprise move, Estrada signed into law on January 23 Ordinance No. 8516, cancelling the 40-percent increase in real property tax rates that was supposed to take effect this month.

“We are debt-free now, that’s why I ordered the stopping of the increase of our real property taxes. We have paid our debts,” he said in a press conference on Monday.

Estrada earned the ire of businessmen after raising real estate taxes by as much as 150 percent during his first term as Manila city mayor.

The move had been necessary, according to the mayor, to enable the local government to pay the P5.5-billion debt the city owed during the administration of former mayor Fred Lim.

Back then, he said he had no choice but to increase the taxes. “We had a bankrupt city, so we have no option but to raise taxes,” he recalled.

Now that the debt has been successfully paid, Estrada said the tax increase is no longer necessary.

 

Majority Vote

With Manila’s financial burdens finally solved, the city council had voted on an overwhelming majority on Councilor Anna Katrina Yupangco’s proposed ordinance to freeze the 40-percent real property tax on January 10.

The tax hike was supposed to pick up from the 60-percent increase that had been collected starting Jan. 1, 2014 because of Ordinance No. 8330, the city’s new revenue code.

Before that, Yupangco said Manila had been operating under a 20-year-old revenue code, and was being pressured by the Department of Finance and Commission on Audit to revise the code.

With the 40-percent increase permanently shelved, Manila will just continue collecting real property taxes using the old 2013 schedule, he added.

“The considerable increase in tax collection enabled and capacitated the city government of Manila to pay and settle its debt obligation. The previous debt servicing payments done by the city throughout the years are already eradicated,” the ordinance stated.

“Considering there is no more debt servicing in its funds, the city government of Manila can now allocate its funds for the further improvement of its projects and programs without further burdening the public with additional tax increases,” it added.

During the series of public hearings on the RPT increase in the barangays, Yupangco recounted that several property owners were concerned that any additional tax increase would be too much for them.

“So our intention was to remove that added financial burden to taxpayers. Of course, additional funds for the city will be good, but we saw that maybe we could stop this or put this on hold,” Yupangco pointed out.

“We’ve proven that with the additional revenues from the adjusted tax rates, the city government was able to implement new projects. And the people saw our service such as improved health services,” she added.

 

Like us in Facebook

Features

Latest News

DBM signs MOA with PLM on procurement course

    By Rose de la Cruz   Last February 19, the Department of Budget and Management, through the Government Procurement Policy Board (GPPB), signed... Read More...
A hollow block business that rose from a personal need

  By Rose de la Cruz   The hollow block business of Franklin Carmelo in Urdaneta City, Pangasinan began out of a personal need to fence his other... Read More...
Comelec control urged for narco-infested LGUs

  By Francisco Benjamin Garcia   Rep. Bernadette Herrera-Dy, chairman of the committee on public information at the lower house has urged that... Read More...
IMAGE IN THE MIDDLE OF THE STORM

WHILE the modernization of public utility vehicles has always been in the wish list of past administrations, thought of as a solution to the... Read More...
IMAGE Honest Hubby and Other Laughs

Honest Hubby?THERE was this old lady who was caught shoplifting. On court day her husband accompanied her as she faced the judge. "Why did you... Read More...
IMAGE All about women and wives and other laughs

All about women and wives I married Miss Right. I just didn’t know her first name was Always. ***** Marriage is a three-ring circus: engagement... Read More...
IMAGE TAMANG DESISYON

TULUYAN nang tinuldukan ni Presidente Rodrigo Duterte ang anumang pagtatangka ng ibang mga grupo at sektor na buhaying muli ang usapang... Read More...
IMAGE GINHAWA PARA SA MGA MAMAMAYAN

Guhit ni Ed Rompal INIULAT ni Senador Sonny Angara na nagkasundo na ang congressional bicameral conference committee sa limang probisyon na... Read More...

Our Guests

Today10
Yesterday1016
This week4700
This month18522
Total871158

Visitor Info

  • Your IP: 54.234.233.48

Who Is Online

27
Online

Friday, 23 February 2018
© 2016 OpinYon News Magazine Online. All Rights Reserved.

Please publish modules in offcanvas position.