Baguio can earn enough to forget IRA — mayor

By Dexter A. See

BAGUIO CITY — Mayor Mauricio G. Domogan said Tuesday that the city government can be independent of its share of the Internal Revenue Allotment (IRA) from the national government once it is able to maximize its tax collections.

At present, 44.6 percent of the P1.051-billion annual budget of the city government comes from its IRA.

But if city tax measures are reviewed carefully, Domogan said the local government unit (LGU) is capable of internally generating well over P1 billion a year.

He said one of these measures is the gradual increase of taxes, beginning with real property which has not increased its valuation of land in 15 years.

Likewise, the city government must pursue the collection of its P125-million share from the operation of the Philippine Economic Zone Authority (PEZA), he said.

Domogan said the city could also derive income from other taxes due from the existence of locators coupled with the collection of the over P650 million in unremitted share of the city government from the lease rentals of Camp John Hay (CJH).

Once the decision of a local court becomes final and executorial, the mayor said all businesses within CJH will be required to pay for appropriate business permits from the city government.

Domogan also looks forward to the full operation of the city-owned Asin mini hydro-power plants which could contribute in lowering electricity rates charged to local consumers.

“Once the three major power plants are able to operate in its full capacity, its projected output will be at least 8 megawatts, if fully-rehabilitated. Baguio City is the only local government in the country that owns minihydro power plants,” he said.

Domogan will also explore the possibility of collecting the city’s share from the existence of its transmission facilities and lines in the different parts of the city so that it will be able to get what is due to the local government.

Because of the rapid growth in the city’s population which is triggered by rapid urbanization, Domogan underscored the importance of exerting every possible means of generating revenue for the local government in order for it to effectively and efficiently deliver the required basic services to the people.

However, the projected increase in real property and other forms of taxes to be enforced by the city government will be subjected to the appropriate consultation with concerned sectors in order to get the sentiments of the people regarding the tax collection efficiency of the local government vis-a-vis the delivery of basic services.