Press Release
July 16, 2016

Pimentel seeks bigger tax shares for LGUs; files 10 new bills
in 17th Congress

Senator Aquilino "Koko" Pimentel III today said faster development and progress in the countryside would be easily attained if local government units (LGUs) are given more resources to make them fulfil their role as front liners to their respective constituents.

Pimentel, the incoming Senate President, has refilled his "Bigger Pie, Bigger Slice" bill to amend Section 284 of Republic Act 7160, expanding the tax base and increasing the shares in the national taxes of LGUs.

He said the LGUs, as front liners in the delivery of government services, have been given numerous mandates but, most of the time, their resources have been overlooked and have not been coming to them.

Once passed into law, the shares in the national taxes of the LGUs, namely, the provinces, cities, municipalities and barangays, would be increased from 40 percent to 50 percent.

Their tax base would also be expanded because these would cover Bureau of Internal Revenue (BIR) taxes and the tariffs, duties, fees and charges and national internal revenue taxes of the Bureau of Customs (BOC).

Senate Bill 110 topped 10 bills filed recently by Pimentel that included the creation of a framework for the right to adequate food and the Mindanao railway, end to labor contractualization and abolition of the Road Board.

Others are changes to the bank secrecy law; modernization of procurement during calamities; creation of a committee for the prevention of torture; increased penalties on reckless imprudence and negligence in the Revised Penal Code; and strict enforcement and compliance with the national building code.

Pimentel said the full empowerment of LGUs has been a long standing advocacy of the administration party PDP Laban which he heads and, "we intend to see through its desired fruition by the passage of the necessary legislation."

He said the bill seeks to expand the source of funds for LGUs by changing the words "national internal revenue taxes" to "national taxes" in R.A. 7160 which is still, if not more, compliant with the provisions of the Constitution.

The Constitution provides that "local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them."

"The bill aims to empower LGUs, all the way down to the barangay, with bigger funds, and hopefully, with greater means to change the lives of their constituents," Pimentel said.

He said another collateral result of the bill is that it converts the fight against smuggling into a national and grassroots concern because the LGUs would be more sensitive on matters concerning smuggling operations.

"If the fight against smuggling succeeds, the BOC's collections will increase and which, in turn, will also increase the LGUs' share in the national taxes," said Pimentel.

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