MEND the CODE

Is it time to amend the Local Government Code?

The 1987 Constitution (Art. X, Sec. 6) clearly states that “LGUs shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.”  This is the main principle that should guide the LGCode review.

When it was passed in 1991, it limited LGUs’ IRA share from the internal revenue taxes collected by BIR and explicitly left out LGUs’ rightful share from external revenue taxes collected by BOC.  Customs duties comprise about 35% of the “National” taxes, so that’s just about how much LGUs are not getting a just share from.  

By the way, I heard and validated that there are groups lurking around offering loans to LGUs assuring them that they can repay such loans from their fair share from customs duties.  LGUs beware!  

Rest assured that the top priority of the Leagues is an increased LGUs’ share!  We will seek for more effective fiscal policies that will empower LGUs to attain fiscal autonomy to become self-reliant communities.

I have been regularly representing ULAP and LPP in the meetings called by the Senate Committee on Local Government chaired by Senator Edgardo Angara on the LGCode amendments.  He created three separate TWGs to simultaneously discuss Books I, II and III.  We recommended that ULAP and at least all the four LGU Leagues representing the provinces (LPP), cities (LCP), municipalities (LMP) and barangays (LnB) should all be duly represented in all groups.

After all, the opinions and recommendations of our local officials, who have been at the forefront implementing the LGCode, must be heard as they have a first-hand knowledge and experience in pointing out its flaws to ensure full decentralization to enable LGUs to immediately respond to the increasing demands of their growing population. 

It’s time to Mend the Code -- for real this time!


Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TheLOBBYiST.
About the Author
Sandra Tablan Paredes is presently the Executive Director of the League of Provinces of the Philippines (LPP) since October, 2016 although she previously served LPP as Director from 1997 to 2004 Sandy helped organize ULAP in 1998 with former Governor Joey Lina and advocated for the LGUs' rightful IRA share, among other league advocacies, programs and projects to help local officials ensure local and fiscal autonomy and good governance. Recently served as concurrent interim Executive Director of ULAP from Jan-March 31, 2017. You can email her at This email address is being protected from spambots. You need JavaScript enabled to view it.
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