Lawmakers support direct LGU remittance of national wealth taxes

TACLOBAN CITY, Nov. 10 (PNA) -- A move that pushes for direct remittance of their share of national wealth taxes to host local government units (LGUs) has generated the support of the Leyte provincial board.

The Leyte provincial board unanimously approved an endorsement supporting four Senate bills 241, 427,827, and 1085, which provide for mechanisms for national wealth taxes to be directly given to host local government units.

Leyte Vice Governor Carlo P. Loreto noted the proposal can improve the collections of the LGUs’ share of the national wealth tax at the same time fast track the process for the host provinces, cities and municipalities to get hold and utilize their excise taxes.

In the current practice, the share of LGU in national wealth taxes has to be remitted first to the national government and will remain in government coffers for three years before it is finally given to the concerned LGU.

“The proposed bill is good because as it is, there is already a delay in getting the remitted taxes back to the LGUs,” Loreto said.

Only 45 percent of the 40 percent share have come back to LGUs and this causes delay to development projects the taxes are intended for, Loreto added.

The Local Government Code provides that in addition to the internal revenue allotment (IRA), LGUs shall have an equitable share in the proceeds derived from the utilization and development of the national wealth within their respective areas, including sharing the same with the inhabitant by way of direct benefits.

The amount of share is 40 percent of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes,

fees or charges, including related surcharges, interests, or fines, and from its share in any 

co=production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction.

In June, the department of budget and management released PHP863.72 million from the total actual collection amounting to PHP2.15 billion in the Visayas as 40 percent share of LGU in the proceeds from petroleum, coal, geothermal, hydrothermal, and wind resources.

Western Visayas, Eastern Visayas and Central Visayas get the biggest allocation of shares in the amount of PHP724.84 million PHP49.21 million, and PHP33.55 million, respectively.

Leyte hosts the largest geothermal field and a number of other mining explorations. (PNA)

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