An opposition lawmaker on Friday welcomed the Supreme Court ruling that the Internal Revenue Allotment for Local Government Units would now include all taxes collected from other government agencies apart from the Bureau of Internal Revenue, especially the Value Added Tax.
“We welcome the Supreme Court’s decision interpreting the basis for the ‘just share’ of LGUs to include all national taxes collected from all government agencies aside from the BIR. This is a long-delayed interpretation of the Constitutional guarantee on local autonomy,” Senior Deputy Minority Leader and Buhay Party-list Rep. Lito Atienza said.
Atienza cited Section 6, Article X of the 1987 Constitution which states that local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them. As it is, LGUs only get their 40 percent share from national internal revenue taxes.
Atienza, a former mayor, said he had tried to convince the government to give LGUs their just share in the national taxes collected in their respective areas such as the VAT, customs tariffs, excise taxes, and fees collected by the Philippine Ports Authority and airports.
“LGUs do not get any share at all from other taxes collected. With the implementation of the provisions of the Local Government Code, national functions such as those on health services have been devolved to LGUs,” Atienza said. “However, previous presidents opted to devolve the functions of several departments but refused to share the revenues with the LGUs. They still do not have fiscal autonomy. This is also the reason why complaints continue to hound LGUs over their perceived failure to provide better services to their constituents.”
Atienza also pointed out that this landmark decision should now weaken the argument of the proponents of federalism—which promises bigger revenues for LGUs.
“Those who are pushing for federalism promise LGUs bigger revenues…Not all regions are self-developed like Metro Manila,” Atienza said.
