MP execs back devolution of tax powers to LGU

By Juliet B. Saley

BONTOC, Mountain Province – The provincial board has supported a resolution of the Sangguniang Panlalawigan of Surigao del Sur requesting the House of Representatives to amend the Local Government Code of 1991 by devolving to provinces power to levy taxes on minerals, sand and gravel extracted from private lands.

Section 138 of the LGC provides that, “ the province may levy and collect not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth and other quarry resources, as defined under the National Internal Revenue, as amended, extracted from public lands or from the beds of  seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.

The Surigao del Sur SP said Section 151 of the National Internal Revenue Code levies a tax on all quarry resources regardless of origin, whether extracted from public or private land, and Section 133 (h) of the LGC expressly provides for the limitations on provinces’ power to levy taxes.

In their resolution, the Sanggunian of Mt. Province said that the devolution of such power to the province would benefit not only the provincial government but also the national government as there would be proper monitoring and collection of tax, ensuring possible increase in revenue.

The Sanggunian here forwarded a copy of their resolution to House Speaker Feliciano Belmonte, Jr. for his information.