An Act Strengthening Local Government Participation In National Development By Increasing The Share Of Local Government Units In The National Internal Revenue Taxes, Amending For The Purpose Section 284 Of Republic Act No. 7160, Otherwise Known As The Local Government Code Of 1991

• At present, the national internal revenue taxes such as the value-added tax and excise taxes on the importation of goods collected by the Bureau of Customs are not included in the computation of internal revenue allotment (IRA) share of LGUs.
• The LGUs argue that the value-added tax and excise taxes collected by the Bureau of Customs should be included in the allocation of IRA share because the said taxes are also “national internal revenue taxes” imposed under the National Internal Revenue Code of 1997, as amended. The Bureau of Customs is only deputized by the Bureau of Internal Revenue to collect such taxes on imported goods.
• The purpose and intent of this bill is to give the LGUs their just share in the national internal revenue taxes by clarifying its definition as referring to “national internal revenue taxes” imposed under the National Internal Revenue Code of 1997, as amended, collected by the Bureau of Internal Revenue and the Bureau of Customs.

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