THE MANILA City government could lose an estimated P1 billion income from real property taxes with the new ordinance reversing a previous incremental increase on rates. However, the administration under Mayor Francisco Moreno Domagoso plans to offset this by improving collection efficiency. “So iko-cope up namin ‘yan (we will cope with that) through efficient and proper (collection of taxes),” City Council Majority Floor Leader Joel R. Chua, one of the principal authors of the ordinance, told BusinessWorld. “Naniniwala kasi si mayor na hindi natin kailangan mag-increase, ang kailangan natin maging efficient ‘yung pangongolekta (The mayor believes that we do not need to have an increase, what we need is to be efficient in collection),” he added. City Ordinance 8567, approved by the mayor last Aug. 23, cuts by 20% starting January 1, 2020 the 60% incremental increase in all real property taxes. “Kung ano ‘yung inin-crease sa’yo, babawasan ‘yun ng 20%, (What was increased before will be cut by 20%),” Mr. Chua explained. During the signing of the ordinance, Mr. Moreno said he is aiming to increase the city’s tax collection efficiency to 90% from the current 72%. The 60% increase took effect in 2014 based on City Ordinance No. 8330 passed in 2013 under then mayor Joseph E. Estrada. Mr. Moreno previously said the ceiling will be cut further by 10%. — Vann Marlo M. Villegas

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