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Albay VG Lagman calls for implementation of increased IRA for LGUs

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Vice Governor Edcel Grex Lagman said that the Albay Sangguniang Panlalawigan will adopt a resolution calling for the implementation of the increased internal revenue allotment of local government.

Lagman cited the case of Mandanas vs. Ochoa where the Supreme Court held that the share of LGUs in “national taxes” includes tarriff, duties among others.

“Sa mga LGU tulad ng mga probinsiya, lungsod, munisipyo at barangay sa buong Pilipinas, yung decision ng Korte Suprema (Mandanas vs. Ochoa) na kinlaro kung anung ibig sabihin ng “national taxes” sa ilalim ng Konstitusyon para sa pag-compute ng share ng LGUs ay final and executory na. Ibig sabihin maliban sa koleksyon ng BIR, dinesisyunan ng SC na sa pag-compute ng IRA ng mga LGUs, kasama na ang tariff and duties na kinokolekta ng Bureau of Customs,” said the Vice Governor.

“In effect, lumaki ang tax base ng national taxes kaya talagang lumaki rin ang share ng mga LGU,” it added.

Lagman said that with the Supreme Court ruling, the proposed budget for 2020 of P640.6 billion allotment to LGUs will increase by about 50% due to the inclusion of the Bureau of Customs collection of national taxes, including tariffs and custom duties.

“In sum, there is a 320.3 billion increase which should amount to a 960.9 billion national tax allotment for LGUs,” said Lagman.

Meanwhile, Lagman said that “official pronouncements” from Malacañan and other national economic managers “have rained on our local fiscal autonomy parade.”

“Bakit kamo? Kase sa 2022 pa raw implementation. Dapat not later than 2021 given the Final and Executory nature of the SC Decision. Kaya kelangan tawagan na nating mga local elective officials ang ating mga kongresista para isama nila sa 2020 proposed budget ang increased National Tax Allotment (NTA) for LGUs. Para maisama na ito General Appropriations Act (GAA) for 2021 at ma-implement na sa nasabing taon,” he said.

“The Sangguniang Panlalawigan of Albay will come up with a resolution next week supporting the implementation of this final and executory SC Decision asap. Letters to congressmen and senators to follow shortly,” the vice governor said.

“Sana lahat ng mga sangguniang panlalawigan, panlungsod, pambayan at pambarangay sa buong Pilipinas ay sumuporta sa nasabing SC decision. Ipaglaban natin itong panalo para sa mga LGUs!”