New cities seek retroactive IRA
CEBU CITY, Cebu, Philippines — The mayors of 16 newly-created cities are hoping that President Benigno Simeon C. Aquino III will consider making their Internal Revenue Allotment (IRA) retroactive from the year their cityhood status was approved.
Bogo City Mayor Celestino “Junie” Martinez said in a meeting initiated by Cebu First District Rep. Eduardo Gullas with the Department of Budget and Management (DBM) that DBM Secretary Florencio Abad failed to give them assurance about the issue, saying he will leave the matter for the President to decide on.
“We are awaiting an appointment with the President,” Martinez said during the weekly 888 News Forum at the Marco Polo Plaza last Tuesday.
Speaking for the rest of the mayors, Martinez said that since the approval of their cityhood, the implementation of many of their projects has been delayed due to the IRA cut following a decision by the Supreme Court (SC) which was adverse to the new cities.
An example Martinez cited is the scheduled P18-million allocation of IRA per month starting next year for Bogo City from the existing P7 million per month the city receives – an amount which corresponds to a local government unit with municipal status.
In 2008, the SC declared unconstitutional some of the laws that formed the basis for the change in status of the towns into cities. However, in 2009 the SC reversed the decision and gave its nod to the 16 towns’ cityhood.
The Supreme Court thrice flip-flopped on its decision on the case when again, in 2010, it insisted on its 2008 ruling. But early this year, it issued a final decision in favor of the new cities.
Just recently, the 122-member League of Cities of the Philippines (LCP) has finally accepted the fact that they would have 16 new members.
The LCP said they abide by the decision of the SC which conclusively decided on the constitutionality of the Republic Acts converting into the new cities the municipalities of Baybay in Leyte; Bogo in Cebu; Catbalogan in Samar; Tandag in Surigao del Sur; Borongan in Eastern Samar; Tayabas in Quezon province; Lamitan in Basilan; Tabuk in Kalinga; Bayugan in Agusan del Sur; Batac in Ilocos Norte; Mati in Davao Oriental; Guihulngan in Negros Oriental; Cabadbaran in Agusan del Norte; Carcar in Cebu; El Salvador in Misamis Oriental and Naga Cebu.


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