Con-Com to come up with “evolving federalism” best suited for PH

When asked if the Con-Com would reject federalism if the process will prove to be too contentious, Puno said that at the very least, they will establish an “evolving federalism” that will adjust to the needs and the given circumstances of the people.

The Con-Com admits that they still need to sort out the complexities of shifting to federalism, especially when it comes to determining how provinces or regions will be divided. The Con-Com has not decided on the formula for determining federal regions or provinces but Generoso said that the creation of the Bangsamoro Region and the Cordillera Administrative Region will be guaranteed.

Revenue sharing and allocation also has to be sorted out. Although Metro Manila accounts for 80-90% of the country’s revenue, Generoso asserts that the law allows for corporations, whose headquarters are normally located in the capital, to consolidate their income from all over the country. A company may earn from its branches in the provinces outside Metro Manila but can file its taxes in Pasig because it is where its headquarters are. In effect, its consolidated income only emanates from one place. The Con-Com intends to study this flawed system to properly determine how revenues are determined and distributed.

The review body hopes to resolve this matter by the end of April, before they go around the country for public consultation. When Puno was asked if the Con-Com would reject federalism if the process will prove to be too contentious, Puno refused to back down and said that at the very least, the Con-Com will establish an “evolving federalism” that will adjust to the needs and the given circumstances of the people.

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