WITH the implementation of the Mandanas Ruling next year, the National Anti-Poverty Commission (NAPC) said it is expecting local government units (LGUs) to lay down projects to alleviate poverty.
Noel Felongco, NAPC secretary and lead convenor, said the ruling will give a boost to the programs and initiatives of the LGUs in helping poor families in their areas.
“We are expecting that in 2022, because of the Mandanas Ruling of our Supreme Court, there will be a big portion of the additional funds of our local government units to be focused on poverty reduction,” Felongco said in Tagalog.
The World Bank reported “as a result of the Mandanas Ruling by the Supreme Court in 2018 (and confirmed in 2019) the internal revenue allotment is programmed to increase by 55 percent in the 2022 budget. The World Bank said it will reach P1.08 trillion or 4.8 percent of the country’s gross domestic product (GDP) compared to 3.5 percent of GDP in 2021.”
The Mandanas Ruling clarifies that the share from the Internal Revenue Allotment of the LGUs does not exclude other national taxes like customs duties. The exclusion of other national taxes like customs duties from the base for determining the just share of the LGUs contravened the express constitutional edict in Section 6, Article 10 of the 1987 Constitution, according to the report posted on the website of Inter-Agency Task Force on Constitutional Reform.
The national taxes to be included in the base for computing the just share of the LGUs shall not be limited to the following:
The national internal revenue taxes enumerated in Section 21 of the National Internal Revenue Code (NIRC) collected by the Bureau of Internal Revenue and the Bureau of Customs;
Tariff and customs duties collected by the Bureau of Customs;
50 percent of the value-added taxes collected in the Bangsamoro Autonomous Region in Muslim Mindanao, and 30 percent of all other national tax collected in the Bangsamoro Autonomous Region in Muslim Mindanao;
60 percent of the national taxes collected from the exploitation and development of the national wealth;
85 percent of the excise taxes collected from locally manufactured Virginia-type cigarettes and other tobacco products;
The entire 50 percent of the national taxes collected under Sections 106 (value-added tax on sale of goods or properties), 108 (value-added tax on sale of services and use or lease of properties) and 116 (tax on persons exempt from value-added tax) of the NIRC as provided under Section 283 (disposition of National Internal Revenue) of the NIRC; and
Five percent of the 25 percent franchise taxes given to the National Government under Section 6 of Republic Act 6631 and Section 8 of RA 6632.
Felongco assured the country’s national implementing agencies like the Department of Social Welfare and Development, Department of Labor and Employment, Department of Agriculture, Department of Agrarian Reform and other government agencies will continue delivering their services to reduce the poverty worsened by the pandemic.
The NAPC has posted an 87 percent overall accomplishment rate for the first quarter of the year based on four key physical areas involved in addressing the cycle of poverty in the Philippines.
The commission said it has focused in the training of volunteers for the Ka-isa ng Sambayan Laban sa Kahirapan (Ka-sambayanihan) volunteer program, its partner in implementing and monitoring various anti-poverty initiatives at the grassroots level.
It signed memoranda of agreement with 190 cities and municipalities, seven provinces and two barangays for the implementation of its anti-poverty efforts.
The commission said 789 people, 20 more than the initial target of 769, rated the training as “good” or “better,” for an achievement rate of 102.6 percent. (JOB)