DOF open to continue talks with LGUs on Mandanas ruling, fiscal capacities

The Department of Finance (DOF) on Monday expressed openness to continue having talks with local government units as regards the National Tax Allotment.

In a press release, Finance Secretary Ralph Recto reaffirmed the agency's commitment to transparency and strict compliance with the Mandanas ruling.

“We assure our LGUs that we are strictly adhering to transparency and accountability, especially with the principles set by the Supreme Court, in implementing the Mandanas-Garcia ruling. Nothing is shortchanged,'' Recto said.

''We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos,” he added. 

Recto is set to meet the League of Cities and Municipalities this week to tackle the computation of the NTA. 

The July 2018 Supreme Court ruling widened the base of the LGUs’ share in taxes or the so-called “Mandanas Ruling.”

This adjustment was meant to improve the fiscal autonomy of LGUs by granting them a more substantial share of the national tax base, according to the DOF. 

The High Tribunal then ordered the DOF chief, the Secretary of the Department of Budget and Management (DBM), the Commissioners of the BIR and the Bureau of Customs (BOC), and the National Treasury, to include all national tax collections in the computation of the NTA base, “except those accruing to special purpose funds and special allotments for the utilization and development of the national wealth.” —Anna Felicia Bajo/AOL, GMA Integrated News