Lobregat urges public to pay right, correct taxes due gov’t PDF Print E-mail
Tuesday, 06 March 2012 14:01

Mayor Celso Lobregat has called on the taxpaying public, specifically those in business, companies and the professionals, to pay the right and correct taxes due the national and local government units, stressing that without these taxes there would be no government at all.

Lobregat issued the call during the kickoff program yesterday morning of this year’s Regional Tax Campaign of the Bureau of Internal Revenue (BIR) with the theme “I love Philippines, I Pay Taxes” at the Convention Center of Garden Orchid Hotel.

According to him, there are two kinds of taxes that companies, individuals and professionals should pay—the national taxes collected by the BIR, and the local taxes paid to the local government units.

The city government of Zamboanga, he said, is also paying taxes to the BIR. In 2011 alone, the city paid to the BIR the total amount of P79,834,889.09 in taxes. “Even the city government is a taxpayer. We should pay not only the right but the correct taxes.

He further said the city government of Zamboanga is more than 70% dependent on the Internal Revenue Allotment (IRA) from the national government.
He explained that of all taxes collected by the BIR, 60% goes to the national government and 40% for the allocation of IRA. “Out of the 40%, 23% goes to
the provinces, another 23% for the cities, 34% going to the municipalities and 20% going to the barangays.

Simply put, if there is a collection of P1,000, the mayor explained, P600 goes to the national government, and P400 for the IRA to be shared among all the cities, provinces, municipalities and barangays in terms of population, land area and equal sharing.

“So, it is important for all the local government units to ensure that the right and correct taxes are paid,” he emphasized. “This year, for the very first time in many, many years, our IRA has increased by P215 million. There are two reasons for that: first, the BIR collection in 2009 had increased, because the IRA is based on the collection of the last three years; what was collected in 2009 is the basis of IRA allocation for 2012,” he said.

Unfortunately, Lobregat lamented that the BIR collection in 2010 had gone down, and for the city government of Zamboanga there will be a “double whammy, not only the collection had decreased, but also because of the flip-flopping decision of the Supreme Court, converting 16 municipalities into cities.” — Vic Larato