CEBU, Philippines - The Talisay City council committees on laws and ordinances, and budget and finance is reviewing a barangay San Isidro proposal which seeks an increase in fees, charges, and payments imposed on all residents as well as business establishments in the area.
Barangay councilor Claudio Parba, chairman of the committee on finance, said there is a need to increase the charges, fees, and clearances in order to augment the income of the barangay and the high cost in delivering basic services.
“It is also necessary to ensure the delivery of the basic services within its area of responsibility,†Parba said.
A fee could be the payment for a clearance for an electrical connection, travel, and employment.
A clearance is a certification for, say, indigence.
The Department of Interior and Local Government recently issued a memorandum to remind all city and municipal governments that ordinances should go through a public hearing prior to enactment.
DILG received several complaints on the alleged excessive fees and charges and burdensome or extraneous documentary requirements imposed by some barangays especially on the issuance of a barangay clearance.
While local government units have the power to create their own sources of revenue under the Local Government Code of 1991, such power is not absolute as the Code itself provides for certain limitations.
The DILG said mayors should ensure that barangay taxes, fees, charges, and other obligations should be based on the respective taxpayer’s ability to pay.
Under the Code, barangays may impose taxes on stores or retailers with fixed business establishments with gross sales/receipts of P50,000 or less (cities), or P30,000 or less (towns), at a rate not exceeding one percent on such sales. (FREEMAN)