PRESS RELEASE
27 OCTOBER 2023
Cua and ULAP Applaud President Marcos for Championing LGU Income Classification
Union of Local Authorities of the Philippines (ULAP) President Gov. Dax Cua applauds the recent signing of Republic Act (RA) No. 11964 by President Ferdinand R. Marcos Jr., instituting the "Automatic Income Classification of Local Government Units Act."
“We believe that the institutionalization of automatic LGU income classification is a transformative step toward empowering LGUs to achieve their full economic potential and contribute to the sustainable development of the Philippines. We commend President Marcos and all the stakeholders involved for their dedication to this significant reform,” Cua said.
ULAP, which actively participated in law’s legislation, welcomes this development in light of the pressing need for the income classifications of the LGUs to be updated to make them consistent with prevailing economic conditions and the overall financial status of LGUs.
The last income reclassification of provinces, cities, and municipalities was done in 2008 to the detriment of the LGUs and their personnel because LGUs rely heavily on said classifications as the basis for fixing the maximum tax ceilings imposable by the local governments; the determination of the financial capability of local government units to undertake developmental programs and priority projects; and for the implementation of salary laws and administrative issuances on allowances and emoluments that local government officials and personnel may be entitled to.
“In light of this momentous development, ULAP looks forward to working closely with the Department of Finance (DOF), the Department of Budget and Management (DBM), and its members leagues to craft the implementing rules and regulations (IRR) of RA 11964. These regulations will provide clear guidance on how LGUs can leverage their income classifications for the benefit of their local communities,” Cua added.
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