The Cebu provincial government does not consider the creation of 16 new cities, three of which are in Cebu, a setback despite a reduction in its Internal Revenue Allotment.
Capitol spokesman Rory Jon Sepulveda said that though the Capitol is first to be affected by the reduction of the IRA with the creation of more cities, Governor Gwendolyn Garcia takes such as a challenge.
Sepulveda added that Capitol neither approves nor goes against the creation of new cities. Rather, it maintains a “hands-off” stand on the issue and instead focuses on looking for other effective means to improve tax collection in the province.
Tax revenue for the province is reduced once a municipality is converted into a city, as cities don’t remit real property taxes to the provincial government. To recall, several local government units in the country held a mass protest last Monday expressing their indignation against the conversion of 16 municipalities into cities even if these towns reportedly failed to meet the income and population required by law.
Toledo City Mayor Arlene “Daydee” Zambo and other city officials have been vocal in opposing the conversion of these towns into cities on grounds that there is a P31 million reduction in Toledo’s P307-million IRA share this year.
An IRA is derived from the income generated through taxes paid to the national government. It is the “rightful share of local government units from national government funds that essentially helps subsidize programs and projects of an LGU.”
The IRA is the fund used by the city government to fulfill its responsibility to promote the general welfare of its constituents. Majority of cities in the country depend on IRA in extending basic services like health, education and housing. — Mitchelle L. Palaubsanon/MEEV