BALANGA CITY, Bataan — Bataeños have another reason to rejoice, be thankful, and proud.
The Supreme Court (SC) has remained firm in its ruling increasing the Internal Revenue Allotment (IRA) of local governments.
In summer session held in Baguio City, SC justices voted 8-3 affirming with finality its ruling expanding the IRA allotment for LGUs to include tax collections of other agencies apart from the Bureau of Internal Revenue (BIR). SC Spokesperson Brian Hosaka said the high tribunal voted 8-3 on Wednesday (April 10) to turn down the motion for reconsideration of Solicitor General Jose Calida.
Apart from the BIR, the SC ruled that the IRA of LGUs should include tariff and duties collected by the Bureau of Customs, 50 percent of value-added tax, 30 percent of national taxes collected in the Autonomous Region in Muslim Mindanao, 60 percent of national taxes collected from the exploitation and development of national wealth, 85 percent of excise tax from tobacco products and a portion of franchise tax under Republic Acts 6631 and 6632 (Horse Racing Laws), among others.
“The said Decision held that the Internal Revenue Allotment (IRA) of local governments under the Local Government Code (R.A. 7160) is understood to be based on the collections of all national taxes,” Hosaka stated.
With this final ruling of the Supreme Court, LGUs are now assured of higher IRA shares which will translate to more programs and projects for the benefit of the people.
The late congressman Enrique Tet Garcia was the original author of the case, together with then congressman now Batangas Gov. Hermilando Mandanas, who filed before the SC a petition asking that the LGUs are also entitled on the questioned taxes being collected by the national government.
For this, we Bataenos are proud to claim that this higher IRA share is the fruit of the hard work of the late Governor Tet Garcia when he was Congressman of the 2nd district of Bataan.