Davao City emerged as the top-performing local government unit (LGU) outside of Metro Manila in terms of locally sourced tax revenues, collecting an impressive P6.67 billion in 2023. This marked a 10.9 percent increase from the P6.02 billion collected in 2022, according to data obtained by the Inquirer.
Cebu City followed as the second-highest revenue earner, generating P4.70 billion, a notable 15.3 percent increase from P4.07 billion in the previous year. These figures reflect the growing fiscal capacity of local governments to generate their own funds.
Top Ten LGUs by Tax Collection
Rounding out the top ten cities in terms of tax collection were:
- Santa Rosa City – P3.95 billion (up 19.5 percent from P3.31 billion in 2022)
- Calamba City – P3.57 billion
- Cagayan de Oro City – P3.13 billion
- Batangas City – P2.73 billion
- Antipolo City – P2.56 billion
- Rizal Province – P2.50 billion
- Iloilo City – P2.47 billion
- Mandaue City – P2.42 billion
Bureau of Local Government Finance (BLGF) Executive Director Consolacion Agcaoili attributed these improved tax collection performances to updated revenue ordinances, the use of effective tax campaign strategies, the adoption of modern collection practices, and streamlined fees and charges systems.
Billion-Peso Club: Wealthiest Local Governments
A total of thirteen provinces and cities have joined the ranks of LGUs that generated over a billion pesos in local tax revenues. Leading the list is Camarines Sur, which collected P1.34 billion, followed by Negros Occidental with P1.26 billion. Other notable members of the “billion-peso club” include Limay, Bataan (P1.17 billion), Mariveles, Bataan (P1.16 billion), Zambales Province (P1.16 billion), and Calaca City (P1.14 billion).
Wealthiest Cities and Provinces
While local tax collections provide a measure of a city’s revenue-generating ability, asset values offer a broader picture of wealth. According to the latest Commission on Audit (COA) report from 2022, Quezon City remains the wealthiest city in the Philippines, with assets totaling P443.406 billion, despite a slight decrease from P451.007 billion in 2021. Other wealthy cities include:
- Makati City – P239.476 billion
- Manila – P77.506 billion
- Pasig City – P52.152 billion
- Taguig – P40.840 billion
- Mandaue City – P34.231 billion
- Cebu City – P30.545 billion
- Mandaluyong City – P32.550 billion
- Davao City – P29.701 billion
- Parañaque City – P27.376 billion
Among provinces, Cebu retained its position as the wealthiest with assets totaling P235.738 billion, followed by Rizal (P35.594 billion) and Batangas (P31.999 billion). Other top provinces include Davao de Oro (P23.107 billion), Ilocos Sur (P21.562 billion), Bukidnon (P21.058 billion), and Negros Occidental (P19.419 billion).
Commitment to Fiscal Strength and Governance
Finance Secretary Ralph Recto praised the strong performance of local governments, stating that the increase in tax revenues and wealth reflects improved governance and greater financial independence. “This is a powerful testament to the improving governance, expanding financial capacity, and growing fiscal independence of our local governments nationwide. More Filipinos across the country are benefiting from the continued progress,” Recto said.
In line with these efforts, the Department of Finance (DOF) emphasized that the Local Governance Reform Project (LGRP) will play a key role in enhancing tax administration. The implementation of the Real Property Valuation and Assessment Reform Act (RPVARA) is expected to attract more investments and boost local revenues.
The LGRP is also focused on digitalization, including the creation of a Real Property Information System and other technological innovations. A recent data-sharing agreement between government agencies and local governments aims to improve coordination, making it easier to conduct business and ensuring stronger tax administration through collaboration with the Bureau of Internal Revenue (BIR).
These initiatives underline the national government’s commitment to fostering local economic growth, streamlining processes, and ensuring that LGUs have the financial resources they need to thrive in an increasingly competitive environment.
