MANDAUE CITY, Cebu, Aug. 21 (PNA) — The Mandaue City Government is set to increase tax rates to as high as 300 percent, but to be implemented on a staggered basis in three to five years starting January next year.
Mandaue City treasurer Regal Oliva, a lawyer, said there is a need to update the city’s revenue code because the city’s real property tax has not been updated since 1989 while the business tax has not also been updated since 1999.
But Oliva said the increased rate will still be lower compared to the cities of Cebu and Lapu-Lapu.
The proposed increase of the city’s fair market value will be from 20 percent up to 300 percent depending on the classification of real properties.
Business tax, on the other hand, is expected to increase from 10 percent to 60 percent.
Oliva said the city government needs to start implementing the tax increase in January next year because being the treasurer, she will be held criminally and administratively liable if she will not do any move to update the city’s real property tax and business tax rate.
He said the Local Government Code of 1991 allows the tax revenue code of a local government unit to be upgraded every five years, but it has never been done during the past administration.
Mandaue City officials assured the business sector that they plan to have the full business tax increase within the next three years while within the next five years for the real property tax.
Mandaue city administrator James Abadia said they have to implement the increase so the city can deliver the demands like road projects, garbage collection equipments, among others.
Mandaue City Councilor Diosdado Suico said the city council is set to approve a draft ordinance for the increase in taxes on its third and final reading. (PNA)