Davao City expects higher amusement-tax collection

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DAVAO CITY—The City Treasurer’s Office projected more amusement tax collections this year as the lifting of mobility restrictions is expected to encourage more amusement and entertainment activities.

Acting City Treasurer Lawrence D. Bantiding said the opening of amusement places “is expected to bring more revenues to the city’s coffer.”

“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,” he said.

The city’s amusement-tax collection as of November 2022 hit P15 million after failing to reach P200,000 in 2020. Bantiding said they hope that total collection of amusement tax would hit P30 million this year.

With the “Ironman 70.3” and the MICE (meetings, incentives, conferences and exhibitions) Convention 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. 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 more tourists mean more income for accommodation establishments.

Bantiding said the taxes from these establishments form part of the collection for local sources. Last year, more than 40 percent of the local sources came from business taxes. The city would find ways to 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 [move] double time so that it will be covered by our local collections,” Bantiding said.


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