Cebu, Mandaue’s business tax collection soars past P1 billion

Local

TWO highly urbanized cities in Cebu have already collected more than P1 billion in business taxes this year, reflecting strong economic growth.

This is after Cebu City’s revenue from business permit renewals reached nearly P1.77 billion, following Mandaue City's declaration that they surpassed P1 billion before January ended.

Cebu City's increase

Cebu City’s Business Permits and Licensing Office (BPLO) reported that as of February 10, it had collected P1,769,803,131.57, exceeding last year’s P1.5 billion by about P200 million.

In January alone, businesses paid P1,756,739,945.12, up from P1,550,180,462.15 in the same month last year.

Mayor Raymond Alvin Garcia attributed the higher collections to improved tax efficiency and increased business confidence.

He noted that around 1,000 new businesses had opened this year. He added that the economy had rebounded, and more people were now confident in starting businesses.

Tax amnest and deadline extension

Garcia credited the rise in tax collections to his Executive Order No. 22, which he issued on November 18, 2024, to implement the Real Property Valuation and Assessment Reform Act (RPVARA) or Republic Act No. 12001 in Cebu City.

The law, enacted on July 5, 2024, grants a two-year amnesty on penalties, surcharges, and interest for delinquent real property taxes.

Property owners can settle only the principal amount within that period.

The Cebu City Council also extended the business permit renewal deadline until the end of January 2025 after business owners requested more time.

The original deadline was January 20, but the extension allowed them to renew without penalties.

The Local Government Code of 1991 requires businesses to pay local taxes, fees, and charges within the first 20 days of January or each quarter.

However, the council can approve an extension of up to six months if justified.

Without the extension, businesses that failed to renew on time would have paid a surcharge of up to 25 percent on unpaid taxes and an interest penalty of up to two percent per month, which could accumulate for a maximum of 36 months.

Garcia expressed confidence that these policies would sustain the city’s economic momentum and further improve tax collection efforts.

Mandaue City's tax revenue

In Mandaue, businesses paid more than P1 billion in taxes before January 28, with major establishments such as malls and a brewery leading early payments.

The BPLO Inspection Division noted that many businesses settled their dues on time to avoid penalties.

Despite surpassing its revenue target, BPLO recorded only 2,000 completed payments as of January 31, while around 16,000 active businesses remained in the “for payment” category. Officials expect tax collections to rise further as more businesses complete their payments.

BPLO officials will begin releasing business permits and conducting inspections on February 3 to ensure compliance. Inspectors will check if businesses have displayed their renewed permits and secured the required regulatory clearances.

Mandaue has steadily increased its business tax collections over the years, from P685 million in 2017 to P1.5 billion in 2024.(MyTVCebu)