SC upholds ruling on raising IRA
The Supreme Court (SC) has remained firm in its ruling which increased the Internal Revenue Allotment (IRA) of local governments.

SC upholds ruling on raising IRA

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By James Hernandez

The Supreme Court (SC) has remained firm in its ruling which increased the Internal Revenue Allotment (IRA) of local governments.

SC Spokesperson Brian Hosaka said the high tribunal voted 8-3 on Wednesday (April 10) to turn down the motion for reconsideration of Solicitor General Jose Calida.

“The said Decision held that the Internal Revenue Allotment (IRA) of local governments under the Local Government Code (R.A. 7160) is understood to be based on the collections of all national taxes,” Hosaka stated.

The SC ruled on the petitions filed by by Batangas Governor Hermilando Mandanas and late Bataan 2nd District Rep. Enrique “Tet” Garcia Jr., who is now represented by his son Rep. Jose Enrique Garcia III.

Mandanas filed his petition on January 2012 which asked the high court to stop the government’s misappropriation of the IRA after the 2012 General Appropriations Act (GAA) excluded P60.75 billion in capital outlay.

While, Garcia filed his petition on August 2013 which sought to compel government agencies to pay local government an additional P233.1 billion from 2009 to 2011.

However, in its ruling on Wednesday, the SC turned down Garcia appeal seeking for the payment of arrears since 1992 resulting from the application of the expanded basis in computing the IRAs of LGUs.

The SC explained “adjusted amounts of the IRAs of the LGUs is deemed effective only after the finality of the ruling of the Court.”

“Hence, the adjusted amounts will be given to the LGUs starting with the 2022 budget cycle. The Court, in ruling such, reiterated the “operative fact” doctrine,” it stated.

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