Uniform fees for barangay clearance

A DAVAO City councilor is pushing for the uniform fees for the issuance of barangay clearance for new application and renewal of business permits except for barangays with existing tax ordinance providing its own rate.

Councilor Ralph Abella, proposed ordinance proponent, said it aims to provide a uniform rate of payments to ensure "honesty and integrity" in collection efficiency of fees and for the city to generate income. Abella's proposal will adapt one of the provisions of the Republic Act (RA) 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

He said the ordinance will adapt Paragraph (F) section 11 of RA 11032, which provides that barangay clearances and permits related to doing business shall be applied, issued and collected in the city in accordance with the prescribed processing time of this act provided that the share in the collection shall be remitted to the respective barangays.

He said Business Bureau sought the implementation of Section 11 (F) of RA 11032 by centralizing the collection in the Office of the Treasury.

"Conversely, some barangays may think that they are being deprived of their liberty to issue clearances and impose rates. But that was not the intention of the Business Bureau," Abella said, adding the bureau's intention was just to implement the national law, improve their services, and to have a smooth collection.

He added that some barangays do not have tax ordinances, hence, his ordinance will be the solution to the problem.

"This ordinance will provide a uniform guide for those barangays with no tax ordinance and would encourage barangays with no tax ordinance to pass its own measures," the councilor said.

Meanwhile, once enacted, the following rates shall be the applicable fees for the issuance of barangay clearance based on the capitalization or gross annual income (GAI) - P50 will be charged for below P300,000; P100 for those with GAI with P300,000 to P500,000; P200 for GAI above P500,000 to P1 million; and P300 for P1 million and above.


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