Pangan: A wider and bigger share for LGUs

THIS is welcome news for local government units nationwide.

The Supreme Court, in a recent ruling, gave the local government units an increased share of all, yes, all national taxes, not only from internal revenue taxes.

The Department of Interior and Local Government or DILG, which oversees LGUs of course also welcomed the good news as the decision will predictably make a big impact on the Internal Revenue Allotment (IRA) traditionally received by the LGUs monthly from the national government.

The internal revenue taxes are composed of taxes collected by the Bureau of Internal Revenue such as income taxes, estate and donor's taxes, value-added taxes, excise and documentary stamp taxes.

The highest tribunal justified its decision by saying the just and equitable share of LGUs should be based on all national taxes and not only on national internal revenue taxes.

This sharing should have been discovered by LGUs long time ago to allow them bigger financial support for their projects and constituencies.

The Mabalacat City government, which is a member of the League of Cities of the Philippines, stands to gain from the increase in its share of all national government revenues and will have a better footing to carry on its projects and basic services for its citizenry.

Mayor Crisostomo C. Garbo will certainly welcome this development as it will enable him to expand his programs for his constituents and serve them better.

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There are rumors, however, that the national government has its moist eye on the shares on Gross Income Earned now being received by Angeles and Mabalacat cities.

These cities should register their vigorous opposition to the planned removal of their shares on the Gross Income Earned from the investors and locators inside the Clark Freeport Zone as it will drastically lessen

their resources being used in funding of vital and important projects and infrastructure of these areas.

Besides, the national government should look for other sources and resources and not focus on taking away the shares on the GIE of aforesaid cities. May iba namang pagkukunan e, di ba?

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