The Bureau of Local Government Finance (BLGF) advised local government units to focus on their local revenue collection.
BLGF Director Brenda Miranda made the remark on Wednesday, April 19, even after the Mandanas-Garcia ruling increased the National Tax Allotment (NTA) received by LGUs.
Under the 2018 Supreme Court decision, the NTA, also known as Internal Revenue Allotment, of LGUs should come from all national taxes and not just national internal revenue taxes collected by the Bureau of Internal Revenue.
"Yung share nila, yung National Tax Allotment, is beyond their control kaya dapat rin mag-concentrate din pa rin sila sa local revenue sources nila," Miranda told DZRH.
Miranda explained that the 1987 Constitution allowed LGUs 'to create their own sources of revenue'.
The official also said that the Local Government of the Philippines serves as a guide on the taxes, rates, fees, and charges the LGUs can impose at the provincial, city, municipal, and barangay levels.
However, Miranda stressed that LGUs need to pass an ordinance before they can collect taxes, and other fees from their constituents.
"Yung Local Government Code is not self-executory. Kailangan pa rin ng bawat local government unit na mag-enact ng ordinance para maka-collect sila ng taxes, fees, and charges," Miranda explained.
"Huwag tayong mag-rely sa National Tax Allotment, yung mga binibigay ng ating national government, kasi binigyan naman tayo ng power to raise our sources of revenue," she added.
Aside from the NTA, and taxes, Miranda said that LGUs can also increase their funds through their local economic enterprises.
"Dual yung nature nila. Pwede silang mag-act as a businessman through yung mga markets, hospitals. Iyon yung tinatawag natin na local economic enterprises," the BLGF executive said.
