Davao exceeds tax collection target

DAVAO CITY: The City Treasurer’s Office here said it collected over P3.4 billion in 2021, surpassing its annual collection target of P2.6 billion by 32 percent. A report from the City Information Office (CIO) said the agency managed to surpass its goal collections for 2021 despite strict movement restrictions due to the Covid-19 pandemic which led to the closure of some business establishments. Out of the total collection, business taxes contributed the highest with P1,983,359,957.43. This was followed by real property tax (basic) at P782,983,058.99, and real property transfer tax with a total collection of P224,129,555.88.

Although the city has surpassed its 2021 target, the collection remains lower compared to 2020 when the total collection was P3,788,826,722.66. The city’s collection in amusement tax, business tax, community tax, franchise tax, tax on printing and publication, real property transfer tax, and tax revenue for fines and penalties last year decreased. Based on records from CTO, the city government noted an increase in collection for professional tax; real property tax (basic); special levy on idle land; tax on delivery trucks and vans; tax on sand, gravel and other products; and other taxes (environmental tax). The city remains positive based on the high number of business renewal applicants during the first week of One-Stop-Shop Business Renewal compared with the same period last year.