The significant increase in garbage collection fees for businesses in the City of Manila has drawn condemnation from the private sector.
A Reddit user on Thursday, January 8, shared a post in the “r/phinvest” community reporting on the rise in garbage collection fees that business entities must pay to the city government.
“Please help the businesses in Manila on this issue,” the Reddit user wrote.
“City of Manila is justifying this increase for almost 1,000%, ang rason nila, more than 10 years nang hindi tumaas, so it’s about time. This is understandable kung gradual increase lang,” the Redditor added.
“Pero ‘yung mas malaki pa sa mismong business permit ‘yung garbage fee eh, parang mali. Ano ‘yun, obligasyon ba ng mga negosyante na akuin ang problema sa basura ng Maynila?” the Reddit user continued.
“This sets a bad precedent. Dahil ito na ang magiging basehan ng pagtaas sa mga susunod pang pagkakataon. Aanhin mo ang garbage collection kung papatayin mo ang mga negosyong bumubuhay sa Lungsod ng Maynila?” the Redditor added.
The Reddit user also claimed that the business sector was “never” consulted by the city regarding the increase in garbage collection fees.
“They just imposed this. Kawawa, from small-scale to corporations. Ibig sabihin, kung small scale business owner ka, from 2, 500, naging around [100,000],” they said.
Please help the businesses in Manila on this issue. The mainstream media is not picking this up.
byu/BurningEternalFlame inphinvest
Reports said Manila has raised its garbage fee collection for the first time since 2013 under City Ordinance 9151, which requires businesses, trade and other establishments to pay a quarterly fee.
A garbage fee is a charge imposed by the city government for the collection, transportation, and disposal of solid waste from establishments.
Businesses covered by the ordinance include aircraft and watercraft companies, amusement places, electric and power companies, financial institutions, gasoline stations, hotels, apartments, dormitories, and other rental spaces; learning institutions; market stallholders; media facilities; telephone and wireless communication companies; public transport terminal garages; private warehouses; and film production operations.
The increase drew criticism from some social media users, particularly those operating small and medium enterprises, who lamented the move.
“Wala silang nilabas na basis for computation. ‘Yung kaibigan ko, P3,500 lang garbage fee niya last year. This year, a whopping P48,000,” the Reddit user said, noting that their friend is engaged in the general merchandise business.
“This is alarming, tbh [to be honest]. I was thinking of starting a business pero baka ‘wag na lang. Imagine the number of startups and businesses na mawawalang gana magnegosyo at magsara na lang,” another Redditor said.
“Sobrang laki naman ng dinagdag sa garbage fee, ‘di makatarungan. From 1,250 to 60,000. Sa dami ng business sa Manila, aba sobra sobra na,” a Facebook user commented.
“Yes ma’am, samin [P3,000] plus lang, ngayon P38,0000… akala namin error e,” another Facebook user wrote.
“Hindi mo nga alam paano sila nag-compute. Eh wala pa ngang 50 square meters ‘yung shop namin at repair lang di siya… from P1,500, naging P18,000 samin,” a different Facebook user commented.
About that increase
Addressing the increase, City Treasurer Paul Vega said the adjustment in garbage collection fees was based on a comprehensive study aimed at aligning charges with current waste generation and service costs.
“The existing garbage fee rates were last updated in 2013, more than a decade ago, and no longer reflect current waste generation levels or service costs,” he was quoted as saying in a report.
City Legal Officer Luch Gempis Jr. also said the increase addresses a “long-standing gap,” noting that garbage collection fees in Manila have not been adjusted for over a decade.
He added that the adjustment was “to address the significant rise in waste generated by commercial and industrial sectors and the increase in garbage hauling fees,” noting that the city was advised by the Metropolitan Manila Development Authority to direct its waste to the New San Mateo Sanitary Landfill in Rizal.
Gempis said the ordinance ensures that garbage fees are based on the type of business and estimated waste output, with higher rates applied to businesses that generate more garbage.
“The proposed adjustment was based on actual garbage production of each business industry; meaning, the higher the garbage generated for the industry, the higher the garbage collection fee,” he said.
“With respect to the increase in real property valuation and increase in assessment schedules, this is in accord with a national law — R.A. 12001 — which mandates LGUs to update their schedule of market values every three years to reflect current market conditions and standardized valuations with national government agencies,” Gempis added.
He said the Bureau of Local Government Finance under the Department of Finance has urged Manila to comply with updated market values.
Gempis added that the city government will implement a “transitory two-phased increase,” along with “existing amnesty programs and advance and prompt payment incentives,” to cushion the impact of the significant hike.
