Naga LGU misses 2020 tax collection target
By Jason B. Neola
The Naga City government has failed to attain its tax collection target of P1.4 billion for this year, 2020, due primarily to the adverse effects of the coronavirus (Covid-19) pandemic to the city’s economy, records of the treasurer’s office showed.
Based on the data from the City Treasurer’s Office (CTO), total tax collections for the year only amounted to P1,225,835,209.65, short by some P200 million from its target revenues of P1.4 billion. This year’s tax collection is also lower than P43 million from the 2019 total revenue collections of P 1,268,928,371.35.
The city government attributed the shortfall in tax collections to the negative effects of the pandemic to businesses, most of which have closed shops since the imposition of the enhanced community quarantine in March this year.
LOW COLLECTION. These payment windows at the Naga City Treasurer’s Office are not as crowded with taxpayers compared to previous years. The city government recorded some P200 million in revenue shortfall because of the Covid-19 pandemic.
CTO records show the city’s actual collections for 2020: P528,907,692.64 in total taxes collection from January to November, 2020; P71,428,102.23 in real estate taxes or only 65 percent of its target; P302,097,522.36 in business taxes (98 percent vs target); and P18,574,984.94 in other taxes (60 percent vs target).
In fees and other charges, the city was able to collect P66,844,286.44 (75 percent vs target) while tax payments from the its economic enterprises amounted to P69,962,796.67 or only 45 percent vs target).
With an Internal Revenue Allotment (IRA) of P634,121,420.00 and P62,806,097.01 from other external sources, the city government over-all income for 2020 amounted to P1.226 billion.