Mayors want portability vs reduced IRA

CITY OF SAN FERNANDO — Mayor Oscar Rodriguez and Angeles City Mayor Edgardo Pamintuan are pushing to have the Internal Revenue Allotment (IRA) portability for towns being converted to cities.
This move is to cushion the effect of reduced IRA shares of the 117 member cities of the League of Cities of the Philippines (LCP).
Rodriguez told Sun.Star Pampanga that portability of municipal IRAs will greatly help and address the worries of LCP cities on the reduction of revenue allotment shares.
“Allowing municipalities up for cityhood to bring along their municipal IRA allocation will mitigate the huge cost of conversion,” Rodriguez said, meaning the effect on the current IRA sharing will not be very adverse.
LCP records reveal that the additional 57 cities converted since 1991, for example, represents an opportunity cost of P238 million for each of the 60 original cities.
Mayor Pamintuan said an approach to the portability of IRA would be to assign a fixed municipal IRA share that will be automatically transferred to the cities’ total IRA for every approved conversion.
Pamintuan said the cities depend on the IRA to push for respective development plans.
However, Pamintuan said local measures should also be used by city mayors in ensuring fiscal stability and bringing more income to their respective cities.
“Government has lots of money available and what better way to use it but to allocate it for better IRA share for municipalities and cities,” Pamintuan said.
He said a more realistic sharing based on current demographics is necessary for cities to meet their target development plans. An average LCP city today supports between 34-43 percent of their population in contrast with the 23 percent share.
Meanwhile, Rodriguez said legislators should ensure that the standards for converting towns to cities should be upheld as paramount importance to ensure conversions are within lawful standards.
http://www.sunstar.com.ph/pampanga/local-news/2012/05/31/mayors-want-portability-vs-reduced-ira-224477

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