Let the LGUs collect

Published by the Visayan Daily Star Publications, Inc.

NINFA R. LEONARDIA Editor-in-Chief & President

CARLA P. GOMEZ Editor GUILLERMO TEJIDA III Desk Editor NANETTE L. GUADALQUIVER Busines Editor CEDELF P. TUPAS Sports Editor (On Leave) RENE GENOVE Bureau Chief, Dumaguete MAJA P. DELY Advertising Coordinator

CARLOS ANTONIO L. LEONARDIA Administrative Officer

There is good sense in the bill introduced in the House of Representatives recently seeking for an amendment to the Local Government Code provision that requires taxes collected by local governments to pass through the national government, which later determines how much share the local unit will get, and when.

If it is fortunate enough to be supported by the Senate, the bill will allow local government units such as the towns, cities and provinces, to collect taxes directly from the businesses, industries, and other sources in their own territories.

At present, big establishments and corporations with branches in the towns and cities make big profits from their operations in their host local government units, and yet they pay their taxes to the national government. Although the LGUs later get part of it in what is called their Internal Revenue Allotment, or IRA, the determination of how much they will get takes time, and the releases longer.

Local government executives have been complaining, not only about the amount shared with them. They are also often outraged at the amount they finally receive. That is to say nothing about their complaints on how they have to virtually beg and lobby for the release of such funds, which is often perceived to be contingent on their political relationships with those in high places.

The pending bill hopes to enable LGU heads to know at once how much it can expect, and, more important, they can already have the cash due them with them and can plan out projects they will support. Only the portion due to the national government will be remitted to the national treasury, whose work will probably be made easier with this method.

Let us encourage our congressmen as well as our senators, to look at House Bill No. 1020, or the National Wealth Bill, with favorable eyes.*