Senator Ping Lacson is exploring ways to make the distribution of the National Tax Allotment (NTA) to local government units (LGUs) more equitable, particularly by giving smaller LGUs greater resources to spur development.
Lacson, who chairs the Senate Committee on Ways and Means, said that under the current NTA formula, smaller towns and provinces receive only a fraction of the allocations received by their bigger and wealthier counterparts.
“Kung sinong mayayaman at malalaking siyudad, ang laki ng NTA na nakukuha.”
“Kung sinong mayayaman at malalaking siyudad, ang laki ng NTA na nakukuha. For example ang nanguna Davao City and Quezon City, pumapalo sa P10 billion. Sa maliit na munisipyo pagkaliit-liit, halos hindi nila maramdaman ang share nila sa NTA,” the veteran legislator said in an interview on DZXL radio.
“Ang problema, inequitability ng distribution ng share ng LGU sa ating national revenues. Dapat siguro gawing equitable nang kaunti,” the seasoned lawmaker added.
The NTA, formerly the Internal Revenue Allotment (IRA), refers to the 40-percent share of national tax collections automatically given to LGUs.
For provinces, cities, and municipalities, each LGU’s share within its category is determined based on population (50%), land area (25%), and equal sharing (25%). For barangays, 60% is distributed based on population and 40% through equal sharing, subject to the minimum allocation for qualified barangays.
The senator said one possibility is to distribute “excess” collections to the smaller LGUs.
“Ibahagi natin sa maliit para may pagasa sila umasenso,” he said.
“Walang equitability, lalong naghihirap ang maliliit, lalong sobra sobra ang mayaman.”
“’Yan dapat tingnan ng administration and policy makers natin. Walang equitability, lalong naghihirap ang maliliit, lalong sobra sobra ang mayaman… Ganoon nangyari, ang disconnect. Dapat tingnang mabuti,” Lacson concluded.
