Monday, 25 April 2011 11:06
The approved measure, House Bill 4122 principally authored by Rep. Hermilando Mandanas (2nd District, Batangas), seeks to amend Section 283 of the National Internal Revenue Code (NIRC) of 1997 on the disposition of national internal revenue taxes of LGUs.
Mandanas, Chairman of the Committee on Ways and Means, explained his proposal has three bases, namely the 1987 Constitution, Republic Act 7160 otherwise known as the Local Government Code of 1991 and RA 8424 or the Tax Reform Act of 1997 as amended otherwise known as the National Internal Revenue Code (NIRC).
According to him, Section 6 of Article X of the Constitution provides that "LGUs shall have a just share, as determined by law, in the national taxes which shall be automatically released to them."
Mandanas further cited Section 284 of RA 7160 covers a pertinent provision regarding the share of LGUs in the internal revenue taxes. It states that "LGUs shall have a share in the national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year as follows: 30 percent on the first year of the effectivity of the Local Government Code; 35 percent on the second year; and 40 percent on the third year."
Lastly, he said Section 283 of RA 8424 or the NIRC, the first paragraph thereof provides that "National internal revenue collected and not applied as hereinabove provided or otherwise specially disposed of by law shall accrue to the National Treasury and shall be available for the general purposes of the government, with the exception of the amounts set apart by way of allotment under RA 7160 (Local Government Code of 1991)."
"Considering the clear mandate of the 1987 Constitution emphasizing the just distribution of shares in the national taxes to LGUs, the detailed provisions of the 1991 Local Government Code on the allotment to LGUs of their shares in the proceeds of national taxes, and the explicit NIRC provision stipulating that from the national internal revenue collected, amounts are set apart by way of allotment for the LGUs, it is therefore only just, correct and proper that the computation of the just shares of LGUs in the national internal revenue shall include the internal revenue taxes collected by the BOC. Hence amendment of Section 283 of the NIRC is needed," Mandanas said.
Section 1of HB 4122 seeks an amendment of Section 283 of the NIRC by adding the provision "The share of the LGUs in the computation of the internal revenue allotment shall include the national internal revenue taxes collected by the Bureau of Customs."
The bill is co-authored by Reps. Jerry Treñas (Lone District, Iloilo City), Philip Pichay (1st District, Surigao del Sur), Reynaldo Umali (2nd District, Oriental Mindoro), Tobias "Toby" Tiangco (Lone District, Navotas), Paolo Javier (Lone District, Antique) and Rodolfo Antonino (4th District, Nueva Ecija).
source: www.congress.gov.ph
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