Executive Department to file MR against SC's decision on IRA »Manila Business Bulletin

By Chino S. Leyco

The Duterte Administration will question the recent Supreme Court (SC) ruling on national taxes levied by the national government, the Ministry of Budget and Management (DBM) said yesterday.

In a briefing, Budget Minister Benjamin E. Diokno said that the executive department will table a motion to reconsider SC's decision authorizing local governments to obtain a higher share of all national taxes.

Diokno said that the High Court's decision, if finalized, will force the national government to provide at least 160 billion (IRA) for LGUs

But despite the higher allocation for LGUs, Diokno said the ambitious infrastructure program Duterte administration and government investment rates will not be affected by He explained that the administration would just realign part of its financing for the infrastructure for the implementation of LGUs.

The Budget Leader, meanwhile, praised the SC's decision to have it implemented prospectively and not retroactively. According to initial estimates by the DBM and the Ministry of Finance, the decision of the SC will require about 1 trillion Pillion to 1.5 trillion Pill if the order is applied retroactively.

Earlier, the Supreme Court ordered the automatic release. the fair actions of the LGUs in the national taxes through their respective provincial, municipal, municipal or barangay treasurers, on a quarterly basis, but not more than five days from the end of each quarter. "

which held that the" fair share "of local governments should be" based on all national taxes and not only on domestic taxes on domestic revenues. "

The SC Guidelines are as follows: DOF, DBM, the National Treasurer, the Office of Internal Revenue (BIR) and the Customs Office.

But the SC said that the decision is forward-looking in the application which means that the AS prayer for the arrears payments in their "SC decision included six other sources of taxes for LGUs"

These are customs duties and duties collected by the BOC, value-added taxes and all national taxes collected in LGUs. Autonomous Region of Muslim Mindanao, National Mining Taxes, Excise Taxes on Tobacco Products, National Fees Pursuant to Section 283 of the National Internal Revenue Code, and Fees franchise under Laws 6631 and 6632 (Horse Racing Laws). meant that LGUs would receive larger ARIs from the national budget.