Iloilo City biz permit growth slowed down despite higher issuances

By Rjay Zuriaga Castor

The growth of business permit issuances in Iloilo City slowed between 2023 and 2024 despite an increase in the total number of permits released by the Business Permits and Licensing Division (BPLD).

From 2021 to 2024, data from the BPLD showed a steady increase in the number of business permits issued.

However, the percentage growth noticeably declined, dropping from 8.9% in 2023 to only 3.6% in 2024.

As of July 2025, the BPLD reported that it had already issued 17,857 business permits.

On Tuesday, Aug. 12, Iloilo City Mayor Raisa Treñas-Chu dismissed as “false information” reports claiming that a large number of businesses in the city had shut down due to the 300% increase in real property tax (RPT).

“The data does not show any direct link between the RPT increase and business closures,” she said.

Citing BPLD records, she explained that the 961 business closures in 2024 were due to various reasons “beyond the control of the city.”

Bankruptcy and economic losses were the top reasons for business shutdowns, with 288 cases, followed by changes in business structure or ownership with 145 cases, and low sales and income with 128 cases.

Other reasons cited for closure were high rental costs, end of contracts, lack of available managers, lingering effects of the pandemic, health-related issues, mergers, relocation of owners abroad, and renovations, among others.

The BPLD recorded no cases in which the RPT increase was cited as the reason for closure.

Treñas-Chu stressed the BPLD data did not indicate the RPT hike had “directly” caused the closures.

“It is unfortunate that there are those who continue to spread false information or studies that paint a negative image of our city,” she added.

The mayor also pointed out that Iloilo City’s business tax collections have consistently increased, from PHP 638.7 million in 2022 to PHP 754.5 million in 2023 and PHP 875.1 million in 2024.

Iloilo-based think tank Institute of Contemporary Economics reported on Aug. 7 that the recent RPT hike was the primary factor driving inflation in the city.

The report came after Iloilo City saw a “significant rise” in inflation from 2.7% in June to 3.7% in July, setting it apart from the generally stable inflation rates in the rest of Western Visayas.

ICE noted that even the 40% reduction in the tax hike granted by the City Council has failed to fully cushion its impact on the local economy.