Press Release
April 2, 2014

Local officials support Pimentel "Bigger Pie, Bigger Slice" bill

Strong support for Senate Bill 2045 filed by Senator Aquilino "Koko" Pimentel was shown by endorsements from various local officials, among them city officials of Puerto Princesa in Palawan who adopted recently a city resolution backing the early approval of the measure.

The proposed bill seeks to expand the tax base and increase the shares of local government units (LGUs) not just from national internal revenue taxes but from all national taxes, including collections made by the Bureau of Customs. The resolution, co-authored by city councilors Modesto Rodriguez, Gregorio Austria, David Hagedorn and Patrick Alex Hagedorn, said that the proposed amendment to the Local Government Code of 1991 "will translate into more dynamic local government units especially in the area of development of local communities."

The city officials said that the internal revenue allocation (IRA) of LGUs has been the lifeblood of many of them as far as operations at the local level is concerned.

As proposed by the Pimentel measure, the IRA will be changed into SNT (shares in the national taxes) and its tax base and percentage will be expanded and increased to bring more funds for the enhanced and broadened duties and responsibilities of LGUs.

"It is hereby resolved to strongly support the Senate Bill 2045 filed by Senator Aquilino Koko Pimentel III increasing the share of local government units from 40% of the national internal revenue taxes to 50% share in all national taxes," the resolution reads.

Municipal mayors also threw their support behind the Pimentel bill, among them mayors Rey Navarro of Laak, Compostela Valley, Abraham Burahan of Hadji PanlimaTahil, Sulu and Jonathan Tan of Pandan, Antique, provincial heads of their respective provinces.

Navarro, who is also the executive vice president for operations of the League of Municipalities of the Philippines (LMP), said that he will bring the issue to the next executive committee meeting of the LMP for the formal endorsement of the league, representing 1,491 municipal governments nationwide.

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