The Davao City Treasurer’s Office has projected more amusement tax collections with the lifting of restrictions related to the pandemic.
Lawyer Lawrence Bantiding said during the I-Speak media forum held on January 5, 2023 that the opening of amusement places is expected to bring more revenues to the city’s coffer.
“The amusement establishments (are expected to open) marami po ngayon considering that during the height of the pandemic, may mga restrictions, the amusement places are not allowed. We are hoping this year na rarami po yun. (The amusement establishments are expected to open. At the height of the pandemic, there are restrictions, and amusement places are not allowed. We are hoping that this year the [number] will increase),” Bantiding said.
He said that for 2020, the amusement taxes collected by the city did not reach Php 200,000 but as of November 2022, they were able to collect Php 15 million.
“We are hoping that this year mag-double tayo (We are hoping that this year we can double the collection),” Bantiding added.
With the Ironman and Mice Con as incoming big events in the city this year, a domino effect on revenue and tax collection is expected.
“These events have a domino effect when it comes to our establishments. To those events na namention nyo, ang mga hotels, restaurants, mag-iincrease din yung income nila, consequently, lalaki din ang ma-dedeclare nila na gross sales (These events have a domino effect when it comes to our establishments. With those events you have mentioned the hotels, restaurants, their income will also increase and the gross sales that they will declare will also increase),” Bantiding said.
He said that more tourists mean more income for accommodation establishments.
Bantiding said that taxes from these establishments will form part of the collection for local sources. Based on the previous year, more than 40 percent of the local sources come from business tax, which consists of more than 40 percent of the collection.
Bantiding added that they will collect from every source as this year there is a reduction of almost 1.2 billion in the city’s National Tax Allocation (NTA), previously known as Internal Revenue Allotment (IRA).
“We have to do double time, so that ma-cover up ng local collections natin (We have to do the double time so that it will be covered by our local collections),” Bantiding said. CIO
