Defensor said that Pototan cannot comply with the required P100 million local income excluding the Internal Revenue Allotment (IRA) share.
For a town to become a city, the Local Government Code provides that it should reach at least P100-million annual income, 10,000-hectare land area with a population of at least 150,000.
Only Mati, a town in Davao is qualified.
A proposed amendment of exempting the applicant capital towns from the income requirement is being pushed, but was not yet passed before the House of Representatives, said Defensor.
President of the League of the Cities of the Philippines and City Mayor Jerry P. Treñas said they have proposed a compromise once the cityhood is not stopped.
First, that the National Government does not raise newly-created cities’ IRA share and provide thereof at a staggered basis for the period of five years including its present IRA.
That is, 50 percent on its first year, 62.5 percent for the second, on the third 75 percent and 87.5 percent on the fourth and 100 percent during the fifth year.
“It’s a complicated condition,” dubbed Defensor.
“Both (Senate and House) were selfish.”
“Just imagine how these 32 towns eat the income of the existing cities.Makati, Manila, Quezon City won’t mind but, Negros Occidental which has cities such as Sagay, Himamaylan and Binalbagan among others and even Passi City here oppose.”
In connection, the City Council on Wednesday adopted the resolution of the Council of Sipalay, Negros Occidental “interposing strong objection to the consolidated House Bills 688 and 1770 which calls to exempt from income requirement the (32)capital towns of provinces for conversion to city-hood status subject to certain conditions.”
The City Council here was concerned over the huge deduction of their Internal Revenue Allotment (IRA) shares once the cityhood happens.
”The cityhood will affect our IRA at P32 million deductions,” said Majority Floor Leader Ed Peñaredondo. (LABB)
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