Chapter 5: The Local Government exemptions, it should be interpreted

against the person claiming it.

Code of 1991
 General welfare provisions should be
interpreted in favor of the LGU.
Constitutional Mandate:

 The 1987 constitution mandates  Rights and obligations arising from

congress to enact a local government
code that shall provide for a more
responsive and accountable LGU
structure through decentralization.
 This paradigm shift results from the
realization that genuine development
comes from strengthening local
autonomy.
Scope:
contracts should be governed by the
original terms.
 If no legal provisions or jurisprudence is
available, the controversy shall be
governed by the customs and traditions
of the place.

 All provinces, cities, municipalities,

barangays, political subdivisions.
Officials, offices and agencies of the
local government.

 Applies to autonomous regions until

they come up with their own local
government code.

 Existing tax ordinances remain in force

 All general and special laws, acts,

charters, decrees, and executive orders
that were inconsistent with the code
were repealed or modified accordingly.

Rules of Interpretation:

 Provisions on the powers of LGUs

should be interpreted liberally in the
LGU’s favor. In case of doubts, it
should be resolved in favor of the
devolution of powers
 Tax ordinances or revenue measures
should be interpreted strictly against the
LGU. It should favor the tax payer.
HOWEVER when it comes to tax