Municipal waters as factor for LGU tax share pushed

BUTUAN CITY – Agusan del Norte 2nd District Rep. Dale Corvera filed Monday House Bill No. 6102 seeking to include municipal waters as an additional factor in determining the share of local government units (LGUs) in the national tax allocation (NTA), formerly Internal Revenue Allotment (IRA).

In an interview, Corvera said coastal LGUs are mandated by law to be responsible for the management, conservation, development, protection, utilization, and disposition of their respective municipal waters.

“Despite this, the Local Government Code of 1991, or the Republic Act (RA) No. 7160, does not consider the municipal waters as a determining factor in the allotment of IRA to LGUs that manage municipal waters,” he said.

Under RA 7160, particularly in Section 285, the shares of LGUs are determined only through their population, land area, and equal sharing.

In the proposed measure, Corvera is seeking to amend the particular section of the measure which shall include land area and area of municipal waters as the basis for the NTA allotment for certain LGUs, especially those in the coastal areas.

 “The Philippines is an archipelagic country and in fact, more than 50 percent of our municipalities and cities are considered coastal,” he said.

He described as "unfair" the existing sharing system of NTA as defined in RA 7160 as imbalanced, especially for LGUs that have vast municipal waters.

“These LGUs are compelled to use their resources to manage and protect their municipal waters, and yet, these municipal waters are not a factor in the distribution of the national taxes,” he said.

He also noted the risks faced by coastal towns and cities due to the calamities such as strong cyclones and storm surges.

 “Coastal LGUs are obliged to spend on projects and programs to prevent loss of life and property due to these events,” he said. (PNA)