Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
BASIC PRINCIPLES
At any rate, the new taxing powers take into account the fundamental
principles that govern the LGUs’ right to enact enabling ordinances. These
principles include the following:
• The taxation shall be uniform among all LGUs:
• That taxes, fees, charges, and other impositions shall be equitable
and based on the taxpayer’s ability to pay; that they must not be
unjust, excessive, oppressive, or confiscatory; and not be contrary
to law, public policy, national economic policy, or in restraint of
trade;
• That the taxes be levied and collected only for public purpose;
• That the collection of taxes, fees, charges, and other impositions
shall in no case be let to any private person;
• That the revenue collected pursuant to the LG Code shall accrue
solely to the benefit of, and be subject to disposition by the LGU
levying tax, fee, charge, or other imposition unless specifically, and
accordingly provided; and
• That each LGU shall, as far as practicable, evolve a progressive
system of taxation. (Source: page 17 to 19 Local Finance and
Budgeting by Abletez and Chua)
Basically, all local government units in the Philippines have their sources
of funds for the continuous maintenance and performance of their respective
offices as a governmental institution and thus perform and satisfy the basic social
services needed for by the people in their jurisdiction. The Local Government
Code mandates in Section 289 that local governments shall have an equitable
share in the proceeds derived from the utilization and development of national
wealth within their respective areas, and share these with inhabitants by way of
direct benefits. In addition to this, Section 290 of the Local Government Code
provides that Local governments have a share of 40 per cent of the gross
collection of which national government derives collection from the preceding
fiscal year from numerous sources, including mining taxes, royalties, forestry and
fishery charges and other taxes, fees or charges (including surcharges, interests
or fines) from its share in any co-production, joint venture or production sharing
agreement in the utilization and development of the national wealth within the
territorial jurisdictions.
Though the Local Government Units do have their sources of revenues
from the basic taxes collected by the National government, man, by its nature,
sees these tax collection ideas as "burdening", "overworking" and "exhausting" of
which such antagonism is well demonstrated by the incidence of tax avoidance
and evasion done by certain individuals (Roget's Thesaurus). The problem now
lies on how the Government could diminish among the people such antagonistic
idea regarding taxation. In order to solve this endeavor, one theory that was
formulated was the “zero – taxation rule” in which taxes are to be totally
abolished. The substitute recommended for the abolishment of taxes is
alternative revenues raising mechanisms (though it may also be practiced in
forms of taxes, the people now have the less antagonistic idea regarding taxation
as “diminished” by the “zero-tax rule”).
In the Philippine setting, the “zero – tax rule” is not really absolutely
practiced as there are some basic taxes that serve as sources of revenues for
the government like for example real property tax and business tax. As
mentioned earlier, these taxes serve as the sources of fund together with the
different alternative revenues raising mechanism to be utilized for the growth and
development of local government units. In relation to this, the City of Dasmarinas,
the fourth city in the province of Cavite which was inaugurated in the year 2009
could be the best example of a local government unit which exhibits sustainable
growth and development and thus, is the main subject of this research material.
SEC. 154. Public Utility Charges. - Local government units may fix the rates for
the operation of public utilities owned, operated and maintained by them within
their jurisdiction.
SEC. 155. Toll Fees or Charges. - The sanggunian concerned may prescribe the
terms and conditions and fix the rates for the imposition of toll fees or charges for
the use of any public road, pier or wharf, waterway, bridge, ferry or
telecommunication system funded and constructed by the local government unit
concerned: Provided, That no such toll fees or charges shall be collected from
officers and enlisted men of the Armed Forces of the Philippines and members of
the Philippine National Police on mission, post office personnel delivering mail,
physically-handicapped, and disabled citizens who are sixty-five (65) years or
older. When public safety and welfare so requires, the sanggunian concerned
may discontinue the collection of the tolls, and thereafter the said facility shall be
free and open for public use.”
Going through the given statement, the main reason would have been for
the continuous exercise of the local government of the City of Dasmariñas of its
function as a governmental institution that renders services and facilities to its
people. Considering the present population of Dasmariñas City, which amounts
to over 700,000, excluding those people who does not render permanent
residence in the City itself yet needs to be provided with the basic services
(general security and other basic services), it can be inferred that the share
obtained by the local government of the City of Dasmariñas is not enough to
meet through the basic needs of the residents of the people and thus,
necessitates the employment of alternative revenues raising mechanism.
3. Dividend Income
- Distribution of earnings to shareholders that may be in the form of
cash,stock, or property. Mutual fund dividends are paid out of income,
usually on aquarterly basis, from interest generated by afund's
investments. Also known as a dividend distribution.
(www.asia.advfn.com/money-words_term_6689_Dividend_income.html)
4. Interest Income
- The term that companies use on their income statement for
reporting the interest earned on cash temporarily held in savings
accounts, certificates of deposits, or other investments. Because the
interest wasn't part of the original investment, they record it separately, as
interest income. (www.investorwords.com/6844/interest_income.htmlv)
5. Miscellaneous Income
- Miscellaneous Income is that income realized that is not directly
related to the sale of standard products and services.
Setting focus on the last problem of this research material regarding the
efficiency of the said alternative revenues raising mechanism when it comes
to the satisfaction or whether it serves the purpose of its existence and
employment, considering the development of the local government unit of
Dasmarinas from a Municipality to a City in the year 2009 it can hardly be said
that yes, the alternative revenues raising mechanism employed by the local
government is efficient. In addition to this, the various projects of the City of
Dasmarinas not to mention the lighted center islands, traffic signal lights,
pedestrian foot bridge with elevator, closed – circuit television cameras, efficient
city public library, and public sports complex could strongly prove that the funds
from the alternative revenues raising mechanism are being utilized in a just and
effective way for the welfare of the people.
SYNTHESIS AND RECOMMENDATION
Dasmarinas City, being one of the most populous City in the country,
could have been the best subject on exploring on the matter of alternative
revenues raising mechanism when it comes to its necessity (considering its
population, as the basis of the necessity of its employment) and efficiency of its
employment. The City government has clearly set such mechanisms in order to
provide and satisfy the basic needs of its people. Looking at the projects initiated
by the City government such as the lighted center islands, traffic signal lights,
pedestrian foot bridge with elevator, closed – circuit television cameras, efficient
city public library, and public sports complex could strongly prove that the funds
from the alternative revenues raising mechanism are being utilized in a just and
effective way for the welfare of the people. Another fact to consider on the aspect
of its efficiency is the development of the City of Dasmarinas as a mere
Municipality and now, as one of the Cities of the Province of Cavite.
www.investorwords.com/6844/interest_income.htmlv
www.asia.advfn.com/money-words_term_6689_Dividend_income.html
www.dasma.gov.ph