THE Department of Interior and Local Government(DILG) lauded a ruling this week by the Supreme Court (SC) that will increase the share of local government units (LGUs)from all national taxes.
DILG OIC-Secretary Eduardo M. Ano in a statement welcomed the SC’s decision last Tuesday, saying it “will spell a huge increase in Internal Revenue Allotment (IRA) of LGUs because they will also get their slice of the pie from the national tax collection of other agencies other than the Bureau of Internal Revenue.”
But Finance Secretary Carlos G. Dominguez III said on Thursday the ruling was still an “unverified rumor” pending the “signature of the justices.”
“We are glad of the Supreme Court’s ruling because this will lead to better financial standing of our LGUs,” Mr. Año said.
The decision ruled that LGU’s just share is based on all national taxes, and not only on national internal revenue taxes.
“This means that LGUs will now get a share of customs tariffs and taxes collected by other state agencies such as the Bureau of Customs,” the DILG statement said.
Mr. Año encouraged LGUs to utilize the additional IRA on projects that are in line with national goals such as the “Build Build Build, anti-illegal drugs, anti-criminality and anti-corruption.”
“The increase in IRA, which has already been evident since President Duterte’s term plus the SC ruling, means better chances for the local governments to create positive change within their jurisdiction, especially in addressing illegal drugs and other social needs,” he added.
He also said LGUs’ programs, projects and activities should be aligned with AMBISYON NATIN 2040, the 2030 Agenda for Sustainable Development, and the President’s 10-Point Socio Economic Agenda as stated in Executive Order No. 27.
“This is a step in the right direction. Through this decision, our LGUs will have a taste of how more resources are distributed across all regions of the country,” Mr. Año said. — G.M. Cortez

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