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LGU tax generation rate high, says NEDA

Local government units (LGUs) in the Davao Region have increased their capacity to generate local taxes 97.5% on the average, the National Economic and Development Authority (NEDA) XI reported.
In a press conference last week, NEDA XI Regional Director Maria Lourdes Lim pointed out that the efficiency was higher in collecting real property taxes as some LGUs have instituted amendments in their policies.
In her report last week, Lim said the biggest increase in local taxes “was recorded in the collection of real property taxes at 486% as this was attributed to the move of some LGUs to adjust their tax rates, among them last year.
Based on Section 191 of the Local Government Code of 1991, LGUs can adjust their tax rates every five years up to 10% of the rates of the previous year.
The city saw its real property tax collection jumped to 626% to P3.2 billion last year froma law of P438 million the previous year.
City Treasurers Office head Erwin Alparaque attributed the higher collection efficiency to coordination between the city government and the taxpayers as well as the intensified campaign of the agency on the issue.
Alparaque said the city government is expecting a higher collection value this year because of the implementation of the of 2018 General Revision of the Real Property Assessment which is adjusting the actual value of real properties including land and buildings and improvements within by 30%.
Lim added that in the city, its business tax collection also went up by 23% last year.
Lim said five other LGUs – Digos City in Davao del Sur and the towns of Banaybanay, Lupon, San Isidro and Governor Generoso in Davao Oriental, were also recipients of the Seal of Good Local Governance (SGLG), a recognition handed to them by the Department of Interior and Local Government.
“These LGUs fared well in terms of achieving the parameters under the Seal of Good Local Governance,” she said.
The recognition is an upgraded version of the Seal of Good Housekeeping and are based on financial administration, disaster preparedness, social protection, peace and order, business friendliness and competitiveness, environmental protection and tourism, culture and the arts.

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