19 January 2012

Bigger IRA for LGUs sought

An opposition lawmaker Wednesday batted for an increase in the share of local government units from taxes collected by the national government to enable LGUs to cope with the mounting costs of devolved services.
Cavite Rep. Lani Mercado-Revilla filed House Bill 5399 seeking to amend Sections 284 and 286 of Republic Act 7160, otherwise known as the Local Government Code of the Philippines, to impose a 50-50 share in national taxes.
The filing of HB 5399 followed an on-going squabble over the computation of the internal revenue allotment, with congressmen claiming that government has been shortchanging LGUs of their rightful share in national taxes.

Rep. Hermilando Mandanas (Ind, Batangas) sought the Supreme Court intercession to demand over P500 billion representing the unpaid IRA to LGUs.
Mandanas said the unpaid IRA consisted of value added tax collections made by the Bureau of Customs since RA 7160 came into effect in 1989.
Former Negros Oriental Rep. Herminio Teves agreed that the BoC has indeed been collecting VAT but the total revenue collected reached only P1,123,666,000.
“From said collections, the 40 percent IRA that would have been shared to the LGU is P449,466,400, including the input VAT given by the BIR on their regular revenue collections.




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