Makati weighing real property tax cut to draw in more businesses
By John Victor D. Ordoñez, Reporter
MAKATI CITY is considering reductions to its real property tax and other local taxes to attract more businesses to the city.
“To our partners in the business community, your steadfast support has been integral to our city’s growth. In recognition of this, I have ordered a comprehensive review on the possibility of lowering the real property tax and other local taxes,” Makati Mayor Marlen Abigail Binay-Campos said in her speech during the 8th State of the City Address at Rotary Club of Makati on Wednesday.
She said lowering taxes would make it easier for businesses to operate, in turn boosting the city’s economic performance.
Makati City collected P24.8 billion in revenue in December, most of it generated by businesses.
Collections included P12.49 billion in business tax and P8.69 billion in real property tax.
“With our collective effort, Makati will continue its legacy as a dynamic and thriving city, leading the way in economic resilience, technological advancement and sustainable urban living,” Ms. Binay said.
On Jan. 5, the city removed the 10 enlisted men’s barrios or “Embo” villages from its books after the resolution of a territorial dispute with Taguig City. The loss of population translates to reduced revenue and allocation for national taxes.
Makati also removed subsidies to the Embo villages, which Ms. Binay said would save the city P7.9 billion this year.
Taguig City had claimed the Embo villages as being part of the Fort Bonifacio district.
The Supreme Court had ruled with finality on the case in April last year, upholding Taguig’s ownership of the 729-hectare Bonifacio Global City Complex and several adjoining neighborhoods.
In December, Makati suspended the collection of amusement tax for performers in public places to boost tourism and to help fund the creative industry.