DILG: LGUs must use funds from bigger share of PH taxes for development

MANILA, Philippines — Local government units (LGUs) must use the additional funds coming from their bigger share of government revenue taxes for development, Department of the Interior and Local Government (DILG) said on Thursday.

“We urge LGUs to utilize these additional funds well, and we in the DILG commit ourselves to monitor closely the use of these funds to ensure that they contribute to national development goals and objectives,” DILG Spokesperson Jonathan Malaya said in a statement.

This was after the Supreme Court affirmed its 2018 decision that LGUs are entitled to internal revenue allotments (IRA) based on collections not just from the Bureau of Internal Revenue (BIR) but from all tax-collecting government bodies.

READ: SC affirms 2018 ruling: LGUs should get share of all national taxes

DILG said the added share of government taxes for LGUs will improve basic services offered to the public.

“We are pleased with the decision of the [Supreme Court] since it gives life to the Constitutional mandate that LGUs must be given a just share in national revenues. By affirming its ruling that the source of IRA should come from all national taxes, the delivery of basic services will improve impacting directly on the lives of our countrymen,” Malaya said.

DILG welcomed the high court’s decision, saying it would enhance its services especially in helping the poor and maintaining peace and order in the country.

“We are glad because implementing this decision will allow LGUs to improve its services particularly on anti-poverty and peace and order,” Malaya said.

National taxes are customs tariffs and taxes collected by other state agencies such as the Bureau of Immigration.

Internal revenue taxes, meanwhile, include taxes imposed by BIR such as income taxes, estate, and donor’s taxes, value-added tax, excise taxes, and documentary stamp taxes. /ee

RELATED STORY:
SC: LGUs should get share of all national taxes