Bigger IRA for LGUs?

CEBU, Philippines — Local government units (LGUs) may be granted a larger amount of Internal Revenue Allotment (IRA) due to the Mandanas case that was resolved with finality last May.

Cebu City Mayor Edgardo Labella confirmed that this is a subject of thorough discussion between the Office of the President and the League of Cities of the Philippines (LCP) through the mayors’ representation.

Labella said that the Mandanas case preoccupied the 69th National Executive Board Meeting of LCP last Friday in Davao City.

The Mandanas case is a petition initiated by former Batangas governor Hermilando Mandanas in January 2012.

Mandanas believed that the LGUs “should have been given more.”

Mandanas claimed that the government owed LGUs in the country P500 billion, covering underpayments of the IRA from 1992 to 2012, because the Bureau of Customs (BOC) revenue was not included in the computation.

In Mandanas vs. Ochoa, the Supreme Court ruled that under the Local Government Code that took effect in 1991, LGUs are entitled to a share of the national government’s revenue, payments known as IRAs.

It also found that the national government has failed to include the collections of BOC that are customs duties, value-added tax, excise tax and documentary stamp taxes, in the computation of IRA.

It ordered the national government to correct its computation method and make up the money owed from 1992 to 2012, starting with the 2022 budget cycle.

During their meeting, Duterte announced that he is exploring options for the LGUs to immediately avail their share of the national revenue as ruled by the Supreme Court in the petition filed by Mandanas.

He stressed that while the timing of the SC’s decision is not perfect because of the major programs already being financed by the national government, his administration will find means for the implementation of the SC decision that will expand the IRA of LGUs as early possible.

Labella said that the city mayors are also willing to wait for the right time for the LGUs to receive the expanded IRA. (FREEMAN)