FILE PHOTO: President Ferdinand Marcos Jr. Photo from RTV Malacañang.
MANILA, Philippines — President Ferdinand Marcos Jr. signed the “Automatic Income Classification of Local Government Units Act,” Malacañang said Friday.
The new law, officially known as Republic Act No. 11964, divides municipalities into five classes based on annual average income.
“The State recognizes the need to determine the financial capability and fiscal position of local government units,” it states.
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The Palace said Marcos signed the law on Thursday, October 26, but only released to the media on Friday.
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The classifications of municipality based on annual average income are as follows:
- First Class: P200,000,000
- Second Class: P160,000,000 to P200,000,00
- Third Class: P130,000,000 to P160,000,00
- Fourth Class: P90,000,000 to P130,000,000
- Fifth Class: Less than P90,000,000.
“The first general income reclassification shall be made within six months after the effectivity of the law and every three years thereafter,” Malacañang said in a statement.
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