16/01/2026
Good day,
Due to the increase in business permit renewal fees for 2026 in Iligan City, we humbly ask for your kind understanding as we make a slight adjustment to the rates of our Food and Photography services under Bitebox and Cillos Studio.
Thank you very much for your continued support.
Sincerely,
Bitebox & Cillos Studio
No Tax Increase? Then Why Did Small Businesses Pay More?
The City Treasurer says there was “no increase in tax rates.”
But thousands of Iligan small business owners walked out of City Hall paying much higher fees.
Both statements can be true and that is exactly the problem.
Because what really changed was not the rate, but the assumed income used to compute the tax.
And that was done without telling the people.
Most sari-sari stores, carinderias, repair shops, and small retailers were never asked for:
• Sales records
• Income statements
• Books of accounts
Yet their taxes suddenly went up.
Why?
Because the city used something called “presumptive income.”
In simple terms: City Hall guessed how much your business earns.
Then they taxed that guess.
But they never showed:
• What income they assumed
• What table they used
• What percentage they applied
They only showed you the final number and said:
“This is what you owe.”
That is not transparency.
That is blind billing.
If your tax went from ₱5,000 to ₱12,000, the real question is not:
“Did the rate increase?”
The real question is:
“What income did the city assume I earned?”
And no one is answering that.
Small businesses are not refusing to pay taxes.
They are refusing to pay mystery numbers.
If City Hall truly believes the system is fair, then show the math:
• Show the presumptive income table
• Show the tax percentage
• Show the formula
Because in a democracy, taxes are not supposed to be guesses they are supposed to be computations.
And right now, Iligan’s business taxes feel more like estimates than equations.
Iligan Business Tax 2026 FAQs
1. Did the city increase business tax rates?
Officially, no.
The percentage rate stayed the same.
But many businesses paid more because the income used in the computation was increased.
2. Why did my tax increase if I did not earn more?
Because the city used “presumptive income” an estimated income assigned to your type of business instead of your actual sales.
So even if your real income stayed the same, your assumed income may have gone up.
3. What is presumptive income?
It means the government guesses how much your business earns based on its type, size, or location, instead of using your real records.
That guess becomes the basis for your tax.
4. Was I shown how my tax was computed?
Most business owners were only given a final amount to pay, not:
• The income assumed
• The tax rate used
• The formula
That is why people feel confused and overcharged.
5. Is presumptive income legal?
Yes, it is allowed when no financial records are submitted.
But it must still be transparent, reasonable, and explainable.
Legal does not mean secret.
6. What should City Hall be showing us?
They should publish:
• The presumptive income table
• The tax rates
• Sample computations
So every business owner can verify their bill.
7. What is the real issue here?
Not just taxes transparency.
People are not angry about paying taxes.
They are angry about paying numbers they cannot check.
8. What are business owners asking for?
One simple thing:
“Show us the math.”
If the computation is fair, it should be easy to explain.
