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Unformatted text preview: ded local government business tax power by increasing the allowable tax
rates (10 to 50 percent increases on different categories), allowing ad valorem rates and by
allowing them to tax banks and financial institutions on gross receipts. The Code specifies
the maximum tax that the city can apply on the graduated scale. Olongapo has adopted the
maximum allowable tax structure for all categories. There is also a fixed professional tax of
300 pesos and an amusement tax of no more than 30 percent of the gross receipts. The
barangays are also allowed exclusive taxing powers under the Code for any business that has
gross receipts less than 50.000 pesos. These are usually the neighborhood sari-sari (general)
stores. This creates room for coordination and management between the local unit and the
Despite the importance of business tax to the city, little attention is given to its
administration. As mentioned earlier Olongapo has an extensive commerce and service 22 Dillinger, W. (1988), "Urban Property Taxation: Lessons from...
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- Winter '13