Under the draft Constitution, the regions will receive about 50% of the taxes collected,

According to the draft Federal Constitution of the Consultative Committee of President Rodrigo Duterte (Con-com), at least 1,050 billion billion dollars of financial resources will be distributed among the 18 proposed Federative Regions, announced Monday the spokesman of the organization. Conrado "Ding" Generoso, spokesman for Concom, explained that when the country moves to a federal system under the draft new charter, the federated regions will receive a share of at least 50% of all taxes collected. . income, excise, value added tax and customs duties.

The amount will be divided equally between regions and automatically released, he added.

Generoso added that based on 2017 Bureau of Internal Revenue data, this 50 percent In addition to this fund endowed with automatic credit, the Con-com also proposed an equalization fund that will not be lower at 3% of the annual contribution. The funds, says the spokesman, are "money that will be in the hands" and will be "under the control" of the governments of the federated regions

. The Equalization Fund should be allocated according to the needs of each region, prioritizing those that need support to achieve the financial viability and economic viability determined by the Intergovernmental Federal Commission (FIGC), added Generoso.

or the central national government and the federated regions should ensure that taxation is "uniform, equitable and progressive, and that no double taxation is allowed".

Tax Powers

Proposed constitution, the federal government has the power to collect and collect all taxes, fees, charges, charges and other charges, except those granted to the federated regions, according to Generoso.

The Federated Regions have the authority to collect and collect the following taxes, fees and charges:
• Property Tax
• Inheritance Tax
• Donor Tax
• Stamp Tax documentaries
• Business Tax,
• Franchise Tax
• Environmental Tax, Pollution Tax and Similar Taxes
• Tax on Road Users
• Fees for Taxation registration of vehicles
• Freight allowance; and
• Local taxes and other taxes that may be granted by federal law

Not even as IRA

Currently, local government units (LGUs) receive annual funds in the form de

However, Generoso said that the 50% and equalization funds will be different from the IRA, which he noted as an "inequitable" system that they "try to cure" .

Under the Local Government Code (LGC), the share of IRA in local governments is 40% of the national taxes collected in the third fiscal year preceding the current fiscal year, while the remaining 60% is paid to the national government

. The IRA's share of the LGU is calculated on the basis of its population and area.

According to the Con-com project, the government of the federated regions would have the power to "determine the share of its cities" and "to create their own formulas". sharing, "Generoso sai

FGIC

Meanwhile, Generoso said that the FGIC would be responsible for developing the criteria and rules in the prioritization of the use of the Equalization Fund, among others.

consisting of a President and 14 members: two appointed by the President, two members from the House of Representatives, two from the Senate, four appointed by the Board of Regional Governors and a representative of the Bangsamoro region, the Cordillera region and the secretaries of the Department of Budget and Management and the Department of Finance

The four members appointed by the Board of Regional Governors should be legal experts , economics, governance, and / or public finance.At the same briefing for the media, Mr. Generoso also discussed the design, structure and polishes and powers proposed by ConCom for the federal government or the central national government and the 18 federated regions. om proposes the powers of the federal government on basic education, commerce, banking

Con-com in bench must vote on the whole of its draft Charter on Tuesday, July 3 at morning.

Copies of the final the project will then be submitted to the President by 9 July at the latest.

Presentations and regional consultations will follow, the findings of which will be part of the committee's final report. – With reports of Micah Yurielle P. Atienza, trainee, INQUIRER.net

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