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MAKATI City Mayor Mar-len Abigail “Abby” S. Binay announced last Sunday that all 23 barangays of the city this year are getting an additional P10-million share each from the city’s basic real property tax (RPT) collection, following the transfer of the 10 ‘Embo’ (Enlisted Men’s Barrio) barangays to Taguig.
A ruling by the Supreme Court transferred barangays Pembo, Comembo, Cembo, South Cembo, West Rembo, East Rembo, Pitogo, Northside, Southside and Rizal to the jurisdiction of the Taguig City Government.
The mayor said the Department of Budget and Management (DBM) has also confirmed an average increase of 6.20 percent in their final National Tax Allotment (NTA) allocations this year.
“As expected, the exclusion of the 10 ‘Embo’ barangays has resulted in bigger allocations for each of the 23 remaining barangays from the city’s basic RPT collections and the NTA. I am exhorting all barangay leaders in the city to ensure that these added resources will be optimized for innovative, high-impact programs and services aligned with Makati’s vision of an inclusive, sustainable and resilient future,” Binay was quoted in a statement her office issued on February 4.
The mayor said that based on the report of the city Accounting Department, a total of P10,085,043.77 has been added to the RPT share of each of the 23 barangays, translating to an average increase of 17 percent after the 10 “Embo” barangays were excluded from the 50-percent equal sharing.
Binay noted that in 2023, the 10 “Embo” barangays had contributed only one percent of the city’s total RPT collection, with 99 percent generated by the 23 remaining barangays.
Based on Chapter 7, Section 271 (b) of the Local Government Code, 70 percent of the proceeds from basic RPT collections shall accrue to the general fund of the city, while 30 percent shall be distributed among the component barangays of the city where the property is located. The 30-percent share is further broken down as follows: 50 percent shall accrue to the Barangay where the property is located, while 50 percent shall accrue equally to all component barangays of the city.
Meanwhile, the DBM has reported an average increase of 6.20 percent in the final NTA allocations of the 23 Makati barangays, with total NTA allocation this year amounting to P315,962,935. This is higher by P18,458,197 than the previous year’s allocation.
Binay earlier reported that the city breached its 2023 revenue target by 39 percent, reaching P24,870,228,884.28 last December 31. The bulk of income came from Business Tax with P12,534,245,251.42, or a 37-percent increase over 2022. The next biggest contributor was RPT with P8,705,282,414.83 or nearly seven percent higher than 2022. Overall, the city’s local revenue sources posted a 22-percent increase and exceeded target by 44 percent in 2023. Other local sources included Fees & Charges which amounted to P839,906,201.40, and Economic Enterprises with P365,774,793.10.
The NTA, which replaced the previous internal revenue allotment (IRA), is distributed among LGUs – provinces, cities, municipalities, and barangays – using a specific formula. It takes into account population (50 percent), land area (25 percent), and equal sharing (25 percent).
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