TAX collections by local government units (LGU) topped P200 billion in the nine months to September, with nearly half consisting of business taxes, the Bureau of Local Government Finance (BLGF) said.
LGU overall collection efficiency rose to 84% during the nine months from 78% a year earlier, according to BLGF data.
Taxes collected during the period accounted for 84.12% of the P238.017 billion target for the year.
Of the P200.24 billion total tax take, business tax made up 47.49% of the total, or P95.11 billion, followed by real property tax of P57.03 billion, income from other fees and charges of P30.47 billion and income from economic enterprises of P17.62 billion.
Cities accounted for P142.03 billion of the total, followed by provinces with P30.15 billion and municipalities with P28.05 billion.
Municipalities were top-rated in collection efficiency at 94%, followed by cities at 86% and provinces 69%.
“The aggregate collection performance of all local government units is already 85% as of third quarter 2019,” BLGF Executive Director Niño Raymond B. Alvina said in a phone message.
Among the regions, the National Capital Region (NCR) and Region IV-A or Calabarzon posted the biggest totals.
NCR had a 41% share of the total at P82.68 billion while Calabarzon collected P31.43 billion.
Other regions that collected the most were regions III, VII and VI (Central Luzon, Central Visayas, and Western Visayas), which had P18.26 billion, P13 billion and P8.97 billion, respectively.
This year, the BLGF has set a P307.08 billion collection target for all LGUs, up 19% from the 2019 target “to drive LGUs to optimize their local taxing and revenue-raising powers.”
In a statement, BLGF said 69% of the target is projected to be raised by cities, estimated at P213.71 billion, followed by P54.19 billion collections for provinces and P39.21 billion for municipalities.
“Local treasurers are given until 28 February 2020 to request the BLGF for adjustment of the FY2020 targets, in cases of new local legislation adjusting the rates of taxes, fees and charges, closure of business establishments, windfall collections from the previous year which the LGU cannot collect anymore for the current year, reassessment of properties due to natural and man-made calamities, local tax relief programs, among others, subject to validation by the BLGF,” according to the statement.
The three provinces with the highest collection targets for the year are Rizal (P3.14 billion), Bataan (P3.11 billion), and Bulacan (P2.75 billion) while the three top cities were Quezon City at P22.78 billion, followed by Manila and Makati with targets of P21.5 billion and P16.81 billion, respectively.
Among municipalities, the top three are Cainta, Rizal with a target of P700 million, Carmona, Cavite with P560 million and Taytay, Rizal with P500 million. — Beatrice M. Laforga