The Bureau of Local Government Finance (BLGF) of the Department of Finance (DOF) has set the Fiscal Year (FY) 2020 collection target for all provincial, city and municipal treasurers at Php307.08 Billion to drive local government units (LGUs) to optimize their local taxing and revenue raising powers.
The target is 19% higher than last year’s original target of Php257.58 Billion, composed of own-source revenues of LGUs from real property tax (RPT), local business and other taxes, fees and charges, and receipts from the operations of local economic enterprises.
By LGU level, the target for local treasurers is distributed as follows: Php54.19 Billion (18%) for provinces, Php213.71 Billion (69%) for cities, and Php39.21 Billion (13%) for municipalities.
In terms of revenue source, Php107.19 Billion (35%) will come from real property taxes, Php126.19 Billion (41%) from local business tax and other taxes, Php43.91 Billion (14%) from fees and charges, and Php29.79 Billion (10%) from receipts from economic enterprise of LGUs.
Among the regions, National Capital Region (NCR) has the highest target for FY2020 at Php122.06 Billion (39%), followed by Region IV-A and Region III, with Php46.08 Billion (15%), and Php28.93 Billion (9%), targets, respectively.
The regional breakdown and sources of the FY 2020 local collection target, in Php Billion, are provided as follows:
|Region||Real Property Tax||Local Business Tax and Other Taxes||Fees and Charges||Receipts from Economic Enterprise||Total Local Revenue Targets|
|Region XIII (Caraga)||1.85||1.38||0.88||0.95||5.06|
The following are the top 10 provinces, cities and municipalities with the highest BLGF targets for FY 2020:
|Top Provinces||Target (in Php B)||Top Cities||Target (in Php B)||Top Municipalities||Target (in Php B)|
|Rizal||3.14||Quezon City||22.78||Cainta, Rizal||0.70|
|Bataan||3.11||Manila City||21.50||Carmona, Cavite||0.56|
|Bulacan||2.75||Makati City||16.81||Taytay, Rizal||0.50|
|Nueva Ecija||2.72||Pasig City||11.66||Malay, Aklan||0.42|
|Batangas||2.21||Taguig City||11.47||Echague, Isabela||0.41|
|Quezon||2.11||Pasay City||6.04||Marilao, Bulacan||0.41|
|Pampanga||1.87||Paranaque City||6.04||Pagbilao, Quezon||0.38|
|Cavite||1.81||Davao City||5.95||Santo Tomas, Batangas||0.36|
|Pangasinan||1.76||Cebu City||5.60||Baliuag, Bulacan||0.30|
|Iloilo||1.69||Muntinlupa City||5.03||Guiguinto, Bulacan||0.29|
The target for RPT is based on the LGU’s total current collectibles and cumulative five-year realty tax delinquencies, while targets for local business tax and other taxes, fees and charges, and receipts from economic enterprise/s are based on the previous year’s actual collections plus an incremental factor based on the gross regional domestic product and inflation rate.
The setting of annual local revenue collection target is part of the performance evaluation of local treasurers who are under the administrative and technical supervision of the DOF, through the BLGF, and as one of the indicators in Chapter 15 of Philippine Development Plan (PDP) 2017-2020.
Local treasurers are given until 28 February 2020 to request the BLGF for adjustment of the FY2020 targets, in cases of new local legislation adjusting the rates of taxes, fees and charges, closure of business establishments, windfall collections from the previous year which the LGU cannot collect anymore for the current year, reassessment of properties due to natural and man-made calamities, local tax relief programs, among others, subject to validation by the BLGF.
The BLGF Central Office already issued the preliminary targets for all provincial, city and municipal treasurers on 02 December 2019 and the final targets will be released by 31 March 2020.
By end of Q1 FY2020, local governments are expected to collect Php136.188 Billion or 44% of their target revenues after the renewal of business permits and licenses, and deadline of local tax payments.