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THE
National Economic and Development Authority (Neda) has
asked the Department of Justice (DOJ) for a legal
opinion on the extent of the authority of the local
government units to levy taxes on government
infrastructure projects.
Neda
director general Augusto Santos, in particular, asked
what kind of taxes LGUs can charge contractors
undertaking government projects. The issue was among the
problems identified at the Preforum Workshops conducted
in connection with the recently concluded National Legal
Forum on Infrastructure Development.
In her
reply, then-acting Justice Secretary Agnes Devanadera
said the issue would entail interpretation of the
provisions of the Local Government Code (LGC) of 1991—a
function of the congressional oversight committee, which
is mandated by law to promulgate rules and regulations
for the implementation of the LGC.
She
added the issue is also within the jurisdiction of the
Department of the Interior and Local Government, the
lead agency designated by the President to implement the
Code.
“Pursuant to settled policy and precedents, the
Secretary of Justice does not rule on issues which fall
within the primary jurisdiction of another office—in
this case, the oversight committee and the DILG— over
which rulings or actuations this Department exercises no
revisory authority, unless the request comes from said
office or agency,” she said.
Devanadera pointed out, however, the extent of the
taxing power of the LGUs is “clear and explicit” in
Section 5, Article X of the 1987 Constitution, which
states that each LGU has the power to create its own
sources of revenues and to levy taxes subject to
guidelines and limitations as Congress may prescribe.
Devanadera pointed out that Section 133 of the LGC
enumerates the limitations on the LGUs’ taxing power and
provides for specific guidelines to govern the exercise
of the revenue-raising powers of the local governments.
“Any
imposition by LGUs cannot, thus, go beyond the
enumerated limitations and must comply with the specific
provisions applicable to them. Outside the said
limitations and guidelines, such imposition can be
assailed as ultra vires [beyond its power] and
unauthorized,” added Devanadera. |
