By SHIELA MAE BUTLIG
and GEEFE P. ALBA
Correspondents
MINORITY Floor Leader Agapito Suan said he fears the newly approved, more than P9 billion annual budget for 2026 will harm local business taxpayers.
The 21st City Council on Monday, Oct. 27, approved the P9 billion budget, which includes an estimated income of more than P8 billion from the general fund and more than P1 billion from local enterprises.
Suan, along with City Councilor Imee Rose Moreno, voted against the approval, calling the budget “unreasonable” given that the actual income for 2024 was only P5.2 billion.
Suan told Gold Star Daily, in an interview, that during the Saturday deliberation, he had directly asked the body where it planned to get the nearly P4 billion increase in projected 2026 income.
“Ako silang gi question didto dili ko satisfied sa tubag sa atong local finance committee,” said Suan.
Suan specifically highlighted the projected income from business tax. The actual collection for 2024 was only P1.3 billion, yet the approved 2026 budget projects P2.6 billion.
When he asked the council how they expected to achieve a P1 billion increase in business tax, he said the response was frustrating.
“Ni-ingon man kaha sila nga i-increase nila ang taxes,” said Suan.
He noted that the city already increased the Real Property Tax (RPT) months ago.
Suan then asked rhetorically, “and now i-increase napud ninyo ang business tax to compensate on your projection?”
Calling the projection “binuang” (absurd), Suan urged the council not to over-tax the business sector, despite their role as the “life-blood” of the city government.
Despite the budget’s approval, Suan pointed out that the city’s budget should be sound and balanced, and “not based on wishful thinking.”
A new business owner, who requested anonymity, said a proposed business tax increase in the next two years would be an extra burden for her coffee shop, which just opened this year.
“I have not even earned the returns of my capital yet, and I am trying to come up with the monthly rent,” the owner said.
The City Treasurer’s office mentioned during the Oct. 24 City Budget executive meeting for the 2026 annual budget that it will intensify its tax collection efforts.
The office also noted a proposal for another round of tax increases by 2027, following public hearings.
The owner noted that monthly rent, overhead, and other expenses have already piled up.
“It will be difficult to operate when there are few savings left for new businesses, considering there is not enough support for business taxpayers here,” she added.
For his part, former Oro Chamber Board Chairman Raymudno Talimio, Jr told Gold Star Daily that a “modest adjustment of about five percent or less can be justified, especially if supported by sound economic indicators or higher operating costs.”
“In practice, the city has consistently applied increases of around 10 to 15 percent in the declared gross sales each year, and this has become an established routine within the Finance Office’s system,” Talimio said.
Real estate agent Janice Tapunggot expressed confidence that her business would continue to thrive despite potential tax hikes next year.
This, she explained, is due to their successful strategy of cultivating loyal clients, maintaining efficient operations, and establishing diversified income streams.
“We’ll adjust our pricing structure and streamline costs where possible to keep our services competitive while maintaining compliance with local regulations,” Tapungot said.
However, a businessman, who requested anonymity, said that his business partners have complained, citing fees that are excessively high and noting that garbage collectors refuse service even when they paid the mandatory garbage collection tax.
“Ago'y akong gi stop na kay wa na ko nakasabot sa mga charges na wala’y pulos. Backyard or investor na lang ko ani,” he said.
He currently owns and operates a water refilling station and a photo-video studio.
