Cherith Inna D.
Montero
2009-24021
Mind Map: Taxing Powers of Local Government (General Principles)
Fundamental Principles
 Taxation shall be uniform in each LGU
 Taxes, fees, charges and other impositions
shall:
o Be equitable and based as far as
practicable on the taxpayer’s
ability to pay
o Be levied and collected only for
public purposes;
o Not be unjust, excessive,
oppressive, or confiscatory; and
o Not be contrary to law, public
policy, national economic policy,
or in the restraint of trade
 Collection shall in no case be let to any
private person
 Revenue collected shall inure solely to the
benefit of, and be subject to the disposition
by, the LGYU levying the imposition unless
otherwise specifically provided herein
 Each LGU shall, as far as practicable, evolve
as progressive system of taxation
 The power to impose a tax, fee, or charge
or generate revenue under this Code shall
be exercised by the Sanggunian of the
concerned LGU through appropriate
ordinance
Local Government Law
Prof. Ma. Gisella Reyes
Common Limitations Common-Revenue Raising Powers
 Except as provided in the LGC, LGUs may  Reasonable fees and charges for services
not levy taxes enumerated in Sec. 133. rendered
These include:  Rates for operation of public utilities
o Income tax (except banks & other owned, operated and maintained by LGUs
FI);  Toll fees or charges for the use of any
o Documentary stamp tax; public road, pier or wharf., waterway,
o Taxes on acquisitions mortis bridge, ferry or telecommunications
causa; system funded and constructed by the
o Customs, fees and charges (in LGU concerned
general)  Except as those as enumerated by law
o Taxes on exported Phil. products
o Taxes, fees or charges on
agricultural/aquatic products
when sold by marginal
farmers/fishermen;
o Taxes on business enterprises
certified to by the BOI as pioneer
or non-pioneer for a period of 6
yrs and 4 yrs, respectively from
the date of registration;
o Excise taxes under the NIRC and
taxes on petroleum products;
o Percentage or VAT on sales, or
similar transactions;
o Taxes on persons engaged in
transportation;
o Taxes on premiums paid by way or
reinsurance or retrocession;
o Charges for motor vehicle
registration;
o Taxes on Countryside and Brgy.
Business Enterprises; and
o Taxes on the National
Government, its agencies and
instrumentalities, and LGUs.