Federal states, LGUs to have taxation powers — House panel

MANILA, Philippines — The House of Representatives committee on constitutional amendments yesterday clarified reports on the authority to impose taxes of federal states and local government units (LGUs) under the proposed federal constitution.

Committee secretary Aline Ruth Villaluz said the new charter gives states and LGUs taxation powers.

“Section 5, Article Xll of the draft provides that each local government and federal state shall have the power to create its own sources of revenues and to levy taxes, fees and charges, subject to such guidelines and limitations as Congress may provide,” Villaluz said.

“Such taxes, fees and charges shall accrue to the concerned local governments and autonomous territories,” she added.

On Wednesday, the House resumed plenary consideration of its version of a federal Constitution.

Responding to questions raised by Rep. Lito Atienza of party-list Buhay, Leyte Rep. Vicente Veloso, constitutional amendments committee chairman, said the proposed Charter would strengthen LGUs.

“You don’t burn the whole house down just to correct some defects,” Atienza maintained.

Veloso has said the House would approve its draft charter next month.

The House would then request the Commission on Elections to set a plebiscite for its ratification in February, Veloso added.