DOF vows transparency on nat’l tax allotment shares to LGUs after mayors’ concerns

MANILA – The Department of Finance (DOF) vowed to be transparent and comply strictly with the Supreme Court decision and relevant laws in determining the National Tax Allotment (NTA) shares for localities, following concerns from mayors.

This was after Baguio City Mayor Benjamin Magalong, along with the Anti-Corruption Movement group, Mayors for Good Governance (M4GG) called for a dialogue with the DOF after what they said was a significant shortfall in the share of LGUs from national taxes.

Mayors demand talks with DOF over 'shortchanged' LGU tax share


Magalong said that for 2024, LGUs are set to receive only 31 percent of the NTA, well below the mandated 40 percent under the Mandanas Ruling.

But in a statement, Finance Secretary Ralph Recto said his agency is “strictly adhering to transparency and accountability” in implementing the Mandanas-Garcia ruling.

“Nothing is shortchanged. We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos,” said the finance chief.

Recto added that he was scheduled to meet the League of Cities this week to discuss the computation of the NTA.

The Mandanas Ruling, which took effect in 2022, was intended to increase the autonomy of local governments by providing them with a larger share of national taxes. However, the shortfall in the 2023 and 2024 allocations has raised concerns about the proper implementation of this mandate.