LOCAL GOV’T UNITS TO GET BIGGER SHARES OF NATIONAL TAXES UNDER FEDERAL
SYSTEM
The shares of local government units (LGUs) in the collection of national
taxes shall substantially increase – many by as much as 30 percent – under
the federal system being proposed by a majority of senators, according to
Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today said.
As provided for in Joint Resolution 10 calling for the adoption of a federal
system, all revenues and taxes collected by the LGUs or by the national
government shall be divided in the following manner: 20 percent shall accrue
to the federal government and 80 percent to the federal states.
Of the share accruing to the states, 30 percent shall go to the state
concerned and 70 percent shall be apportioned among the provinces, cities,
municipalities and barangays, according to the formula prescribed under the
Local Government Code of 1991.
Pimentel, principal author of Joint Resolution 10, explained that the shares
of LGUs defined under the Code, will get much bigger under the proposal
because the funds to be apportioned shall include all revenues and taxes
imposed or collected by the federal government.
“That means that monies like customs duties and the collections of seaports
will now be included in the revenues to be divided among the federal
government, the states and the provinces, cities, municipalities and
barangays,” he said.
Under the present system, Pimentel pointed out that “only taxes as taxes
strictly construed are subjected to division between the central government
and LGUs.”
Based on the proposed sharing formula, the province of Abra should get P543
million from government revenues this year. This is P155.1 million more than
its present Internal Revenue Allotment of P387.8 million.
The province of Capiz will be entitled to P710.6 million if the federal
system is established – P203 million more than its current year IRA of
P507.6 million.
Compostela Valley’ share will rise to P766.2 million from the present P547.3
million or a difference of P218.9 million.
Legaspi City will receive P383.2 million, up by P109.4 million from the
present P273.7 million.
The IRA share of Lapu Lapu City will go up from the current P294.5 million
to P412.4 million under the new sharing plan, a difference of P117.8
million.
Cotabato City will have an IRA share of P401.5 million, a P114.7 million
hike from the present P286.8 million.
In the municipal level, the share of Calanasan, Apayao will jump to P134.1
million, an increase of P38.3 million from the P95.8 million it is now
getting.
Gandara, Samar will get P94.1 million which is P26.8 million bigger than its
present IRA of P67.2 million.
The share of Languyan, Tawi Tawi will jump by P30.9 million from P77.3
million to P108.3 million.
Pimentel said the new revenue sharing system will be characterized by
transparency and accountability which requires the federal government to
publicize the remittances of the revenue and tax shares in its website, as
well as in the national newspapers, radio and television.
He said both the federal government and the federal states shall also be
required to submit to the Federal Commission on Audit the pertinent
documents showing the remittances and receipts of the amounts.
Under the proposal, the federal state shall directly remit the shares of the
provinces, cities, municipalities and barangays within 15 days from their
receipt of the shares from the federal government without unnecessary delay.
“The overall effect of requiring direct remittance is to free the receiving
units of government from being held hostage by the remitting authorities. By
that, I mean the states and the local governments would no longer be
subjected to all kinds of humiliating pressures from those through whose
hands their shares of the government revenues used to pass,” Pimentel said.
Date: July 19, 2008
Ref: Omeng Maglangit / (02) 5526733 |
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