INQUIRER FILES
TACLOBAN CITY 鈥� The Borongan City government in Eastern Samar is intensifying its campaign to become a first-class city by enhancing revenue collection efforts and strategic collaboration with stakeholders.
A city must generate at least P100 million in annual local revenue to qualify as a first-class city. Borongan achieved this milestone for the first time in 2024, 17 years after its cityhood in 2007.
While the local revenue of Borongan surpassed P100 million in 2024, the city鈥檚 economic classification was considered 鈥渟econd-class鈥� by the Department of Finance鈥檚 Bureau of Local Government Finance based on its revenue performance two years ago.
鈥淔or several years, we fell short of the target, collecting only P68 million to P78 million annually. The pandemic exacerbated the situation by halting business activities and limiting our capacity to impose taxes,鈥� Mayor Jose Ivan Dayan Agda explained.
Agda expressed confidence in the city鈥檚 ability to upgrade its classification, citing the dedication of the local finance team and the community鈥檚 support.
鈥淲e are confident that with the collective efforts of our finance team and all stakeholders, we can sustain our first-class city status. However, this requires the active cooperation of everyone,鈥� he said.
Agda said Borongan has three years to solidify its financial performance before the final assessment in 2027 and for it to be classified as a first-class city.
鈥淚f we consistently exceed P100 million in local income from 2025 to 2026, we can (truly achieve) our first-class status,鈥� he added.
The city鈥檚 improved revenue is attributed to several initiatives, including the expiration of tax holidays for major businesses and the periodic revision of Borongan鈥檚 tax code.
鈥淲hen these businesses started, they benefited from tax holidays as part of our investment incentives. With the expiration of these holidays, their full payments now significantly bolster our revenue,鈥� Agda said.
The city government鈥檚 commitment to fair taxation was also highlighted as revisions to the tax code adhere to the Local Government Code of 1991 which caps tax increases at 10%.
Agda debunked accusations of excessive taxation, calling these 鈥渕isinformation.鈥�
He said additional income sources, such as Philippine Health Insurance Corporation (PhilHealth) reimbursements, have further strengthened Borongan鈥檚 financial standing.
These funds enable the city government to provide free medicines to residents while reinvesting in its healthcare infrastructure.
鈥淭hrough PhilHealth, we recover a portion of our healthcare expenditures, contributing to our revenue growth,鈥� Agda said without divulging any figures.
With Borongan鈥檚 finances on an upward trajectory, Agda remained hopeful about the city鈥檚 prospects.
鈥淲e have reached our revenue target and will continue to improve. Through collective effort, we can sustain Borongan as a first-class city,鈥� he said.