Despite grumblings by Marikina City residents about being taxed excessively by local authorities, the Commission on Audit (COA) believes the city government has not yet maximized its revenue raising power, thus must raise tax rates anew by at least 50 percent.

In its recently-released 2008 financial audit report of Marikina City, COA noted that despite being categorized as a highly urbanized city, Marikina tax rates remained in the 1995 level when it was still a municipality.

Reacting to the COA recommendation, House Assistant Majority Leader Del de Guzman (Lakas-Kampi-CMD, Marikina City) urged the city government to ignore the audit findings, saying that Marikina city folks should be spared from additional taxation.

“Imposing higher tax rates while our constituents are still reeling from the effects of the worldwide economic crisis can be considered a stab on their backs. We must not increase taxes merely because we haven’t maximized the city’s power to raise revenues,” de Guzman stated.

De Guzman, chairman of the Committee on Basic Education, said maintaining the current tax rates should give the city government the golden opportunity to resuscitate the ailing shoe industryand reintroduce it to the world market.

In reaction to the COA findings, Mayor Ma. Lourdes Fernando assured state auditors that she will call the attention of the city council regarding their recommendation.

De Guzman said he would personally lobby to city councilors to heed the call of Marikina city taxpayers for a tax increase moratorium.

State audit examiners headed by Director Reynaldo Rey pointed out that under the Local Government Code, city tax rates may exceed “maximum rates allowed for the province and municipality by not more than 50 percent except for rates of professional and amusement.

“Real property taxes imposed in 2008 were based on rates provided under Ordinance 223 of Calendar Year 2001 while business taxes were still based on rates under Marikina Revenue Code of 1995 when Marikina was still a municipality, which rates are no longer attuned to the present financial and economic development of the city,” the COA report said.

The report added: “Miscellaneous fees and charges such as permit fees, certificatin fees and some others were still based on ordinances of 1995.”

Auditors asked the city mayor and the city council headed by Vice Mayor Marion Andres to coordinate to codify the various revenue legislations which are still in disarray.