Northern Mindanao gov’ts struggle to offset tax share cuts in post-pandemic recovery

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Northern Mindanao gov’ts struggle to offset tax share cuts in post-pandemic recovery
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Local governments in Northern Mindanao are receiving 15% less compared to the tax shares they got in 2022.

may have ended, but its impact is far from over in Northern Mindanao, where local governments are now scrambling to look for more revenue sources to offset double-digit reductions in their tax shares from the national government.

Oaminal’s announcement was based on Local Budget Memorandum No. 87, which the DBM released on June 9, indicating that the NTA for Misamis Occidental this year is about P1.552 billion. Cagayan de Oro Mayor Rolando Uy, backed by an ordinance, granted tax relief to delinquent real property and business taxpayers and offered incentives for early and advanced payments of tax obligations. Cagayan de Oro’s 2023 annual budget is over P7.5 billion.

Reductions in NTAs have also started to affect the provincial governments of Bukidnon, Camiguin, Lanao del Norte, and Misamis Oriental, as well as their cities, municipalities, and barangays. In its April 10, 2019 resolution in the case of “Congressman Hermilando I. Mandanas, et al. vs. Executive Secretary Paquito N. Ochoa, Jr., et al.” , the Supreme Court en banc declared the phrase “internal revenue” unconstitutional.

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