Press Release
April 18, 2008

Expedite release of TAX collection share to barangays - Angara

Senator Edgardo Angara today pushed for the expeditious release of the barangays' share in community tax collections, asserting that the long time it takes for this process is hampering local governments from responding to the people's needs at the grassroots level.

"When the Local Government Code of 1991 was passed, the goal was to make local government units be more self-reliant, and give them a bigger share of responsibilities in nation-building," Angara said.

"In turn, local governments units, especially the basic unit of our political structure, the barangay, are expected to be more responsive to the people, as they are more acquainted with them," Angara said.

"However, the sluggish release of funds intended for barangay operations have been crippling programs meant to provide basic services and facilities at the grassroots," said Senator Angara.

According to Angara, "Although the Local Government Code has generous provisions identifying the sources of revenue for the barangays, some of these, however, are vague as to when the barangays shall enjoy the same."

"Specifically, Section 164 provides that barangays are entitled to a share of up to fifty percent (50%) of its community taxcollection. But while it provides speedy delivery of national government share from community taxes within a period of ten days at the end of each quarter, it is silent as to when the barangay shall receive its share," Angara pointed out.

"In practice, barangays receive their share of community tax collection only when they ask for it. Lamentably, in most cases, it takes a long time before municipalities and cities concerned release the funds to barangays, causing delays in the rendition of basic services to the constituents. Meanwhile, the city or municipality deposits the share of the barangay with its depository bank under a time deposit account and enjoy the interest it accrues," Angara said.

In this light, Angara has filed a bill amending Section 164 of the Local Government Code, allowing the barangay treasurer to automatically retain for the barangay its 50% share in community tax collection.

"But while this bill is not yet passed, we urge the consideration of local governments to expedite the release of our barangays' share in community tax collection," Angara said.

News Latest News Feed