January 20, 2024

MS. MILA M. MALLONGA

Provincial Treasurer
Province of Cagayan

Subject: Impact of Sand and Gravel Collection Based on the

Remittance of the Province

Madam:

In response to your request for an analysis of how the tax on sand and gravel collections,
particularly the municipal share, has influenced our LGU's overall revenue and contributed to
meeting collection targets through the provincial remittance, I am pleased to provide a
comprehensive overview based on the data from 2016 to 2023.

YEAR TARGET ACTUAL DIFFERENCE % OF

COLLECTION OVER/(UNDER)
TO TARGET
2016 40,000.00 14,652.00 -25,348.00 -63%
2017 50,000.00 757,744.50 707,744.50 1415%
2018 50,000.00 405,965.94 355,965.94 712%
2019 650,000.00 351,345.00 -298,655.00 -46%
2020 650,000.00 1005,435.00 355,435.00 55%
2021 650,000.00 1,236,006.00 586,006.00 90%
2022 650,000.00 914,422.50 264,422.50 41%
2023 800,000.00 589,603.50 -210,396.50 -26%
 Positive Trend and Tax Impact: Despite fluctuations, the overall trend indicates a
positive impact of the provincial sand and gravel tax, particularly on the municipal share,
in our LGU's ability to meet collection targets. Considerable overachievements in key
years, such as 2017, 2018, 2020, and 2021, demonstrate the effectiveness of the
provincial tax imposition in boosting municipal revenue.

 Strategic Adjustments: The remarkable +1415% and +712% overachievements in

2017 and 2018, respectively, can be attributed to strategic adjustments in regulatory
compliance, community engagement, and resource management. These adjustments
not only increased the municipal share but also positively impacted the overall
collections of the province, showcasing the success of a holistic and collaborative
approach to revenue enhancement.

 Challenges and Resilience: Setbacks in 2019 and 2023 (-46% and -26%) indicate
challenges; however, the overall resilience is demonstrated by the positive deviations in
2020, 2021, and 2022, contributing positively to the provincial remittances.

The provincial sand and gravel tax, particularly its effect on the municipal share, has
proven to be a critical factor in enhancing our LGU's revenue and influencing our capacity to
meet collection targets. The positive trend underscores the effectiveness of our strategies,
including the collaboration with the provincial administration in implementing the tax imposition.

Moving forward, we remain committed to refining our approaches, addressing

challenges collaboratively, and further contributing to the prosperity of our municipality and the
province at large. Your continued support and collaboration are invaluable as we work towards
achieving our shared fiscal goals.

Very truly yours,

NOEL T. BELTRAN
Municipal Treasure