City’s P7.8B budget is realistic-Goking
COUNCILOR George S. Goking, chair of the City Council committees on ways and means and on trade of commerce, said that the P7.8 billion budget for 2023 is realistic, citing the city’s revised zonal values.
He said that once the revised schedule of zonal values is implemented, it will help City Hall earn more from transactions involving real properties as it will serve as a barometer for the real price.
Property and land taxes are the largest source of tax revenue for local governments, he said.
Councilor Goking made such observation during the CY 2023 Executive Budget Hearing as he clarified that even though the Bureau of Internal Revenue has its proposed increase of zonal taxes, the city has the power to decide on tax rates of real estate and improvements.
He added that city officials still have the authority to decide either to follow or not the rates set by the national government under the proposed tax reform.
“It’s up for them…if they want to apply it high or if they want to apply zero, it’s up to them. So the principle of local autonomy is still maintained because they are the ones who will determine what rates to be applied to that valuation,” Goking stressed.
The budget for CY 2023 can be achieved because there are other sources of revenues to fund projects and other development plans of the city, Goking opined.