Sagada officials press higher town status with increase in local income

 By Gina Dizon

SAGADA, Mountain Province -  This  tourist town with  a P64 million internal revenue  allotment (IRA), P13.7 million local income included herein,  P9 million tourist fees  and  P1.35 million business taxes in 2019 still remains a 5th class municipality and local  officials want a higher classification so it can have a bigger IRA.

Expecting to be of  higher income classification considering it being a tourist town with 577 business establishments registered early this year and tourist fees, Sagada is still in same category with remote Sadanga and Barlig towns. 

Only the capital town of Bontoc and eastern Paracelis are 2nd class because of their  bigger area and population than the rest of other  towns in the Province.

Fourth class towns are vegetable producing town of Bauko, far flung Natonin and Tadian.

Sagada is one with neighboring Sabangan and Sadanga having the smallest land areas among the 10 municipalities of Mountain Province.

The three towns along with Besao and Barlig belong to 5th class municipalities. 

Based on the Administrative Code of the Philippines, the three factors in classifying a municipality are population, area and local income which bases the  income classification  of the municipality and the computation of the IRA, said former  Mt Province administrator  Amado Batay-an, a lawyer.

The bigger is the land area and the population and local income, the bigger is the IRA.

The local income of Sagada has been gradually increasing since collections from environmental fees from tourists increased.

The local income showed a P7 million in 2015 on to P10.2 million in 2017 and P13 million in 2019, according to municipal treasury records.

Sagada’s local income is largely due to environmental fees collected from tourist arrivals with P7.9 million collected in 2018 to P9 million collected in 2019.

Environmental fees increased along with the increase of tourists from 2015 of 138, 257 visitors to  2019 with 180,000 tourist arrivals.

A tourist pays P50.00 environmental fee once he/she enters Sagada and be able to visit tourist sites.

Environmental fees were then collected at P20 pesos per tourist to P40 to P50 at the current rate.

Business in Sagada showed increasing trend from last year with the increase of  restos and café and souvenir shops as  tourist arrivals showed an upward trend and business has been on an equally increasing trend too.

An amount of  P1.35 million was collected from business taxes in 2019 from last year’s P1.26 million.

The 577 business establishments in town range from sari sari stores to  dry goods and merchandise to internet shops to fruit and vegetable retailers and accommodation among others.  

A decreasing trend was noted among travel and tours/vans and  tourist guides this early quarter of 2019. 

A sharp downward  trend was observed  in travel tours/vans from 31 registrants in 2018 to nine registrants in 2019 although municipal licensing officer Connie Bolares said vans and travel tours gradually register their business permit in the later months.

Registered guides also decreased with 124 from last year’s  254.  Though tourist guides are still complying with requirements of being accredited before they can avail of the necessary ID including the payment of mayor’s permit, Bolares added.

There are nearly 900 tourist guides from five different tourist guide organizations in Sagada.

In 2019, there were  137 registered inns and homestays, nine restos and cafes, 23 souvenir shops, 31 travel and tours/vans, 3 masseurs and 14 weaving shops.

In the early quarter of 2020 showed restos and cafes jumped to 27 registrants along with 34 souvenir shops;131 inns and homestays, 15 weaving shops, 2 masseurs and 9 travels and tours.

Municipal treasurer  Fred Macalingay said there is a need to amend the revenue code where the  travel tours and vans is not clear as to whether the number of vans per unit  is being taxed or the registered travel tours where the vans belong  shall be the one to get taxed.

Meantime, it was known at the  treasury office a number of skilled workers do not pay  the P500.00 occupational  tax.

Sagada has  individual  drivers, transport owners, beauty care workers, masseurs, weavers, house help, carpenters and farm workers. 

Macalingay said the treasury office is including in its collection program to have occupational workers pay the occupational tax in cooperation with barangay units. 

Business taxes collection amounted to P1.35 million in 2019 from 2018’s P1.26 million.

Real property taxes registered P587 thousand in 2019 from 2018’s P473 thousand.

Almost every inch of the 10.876 hectare land area of the municipality is tax-declared by private owners except some remaining communal forests and a few individual lots.