The computations of the League of Cities of the Philippines (LCP) and the Department of Finance (DOF) on the national tax allotment (NTA) share of the local government units (LGUs) are more or less aligned with its expected rise from 32 percent to 35 percent in 2026.

In a meeting between LCP officials and DOF Secretary Ralph Recto, it was revealed that the calculations and deduction under various laws were somewhat parallel to the assessment of both parties.

During dialogue, the computations between the LGUs and the DOF were compared, revealing that the calculations and deductions under various laws were more or less aligned.

“For cities and other LGUs, the NTA share is expected to increase from 32 percent to 35 percent in 2026 with the expiration of the TRAIN (Tax Reform for Acceleration and and Inclusion Act) Law and Sin Taxes on Universal Health Care Law. Cities can expect the incremental revenues from these two laws to form part of the national tax base,’’ the LCP stated.

The TRAIN provides hefty income tax cuts to most Filipino taxpayers while raising additional funds to help support the government’s accelerated spending on its “Build, Build, Build” and social services programs.

Meanwhile, the Sin Tax (also known as a sumptuary tax, or vice tax) is an excise tax specifically levied on certain goods deemed harmful to society and individuals, such as alcohol, tobacco, drugs, candy, soft drinks, fast foods, coffee, sugar, gambling and pornography.

LCP Acting National president and Quezon City Mayor Joy Belmonte, LCP secretary-general and Baguio City Mayor Benjie Magalong, LCP Vice President for Visayas and Dumaguete City Mayor Felipe Antonio Remollo and LCP Executive Director Veronica Hitosis were present during the meeting with DOF Secretary Ralph Recto.

Earlier, the LCP has strongly pushed for the correct, accurate and transparent accounting of the LGUs’ national tax allotment share.

In a statement, the LCP agreed with the insistence of Magalong for the strong push the full and clear accounting of the LGUs’ NTA dividend, citing it as “essential in ensuring that our cities receive the necessary resources for effective governance.’’

As the demand for improved basic service delivery continues, the LCP emphasized that securing adequate resources to finance these services are of paramount concern for our constituents. 

“We, the 149 members of the league, appeal for transparency that all LGUs deserve for the benefit and welfare of our constituents,’’ the LCP said. 

“We must address these concerns to ensure that the just share of the local government units is computed and distributed correctly in accordance with the law. It will enable us to implement more effective policies and programs to better serve our people,’’ it added.

Through Recto, the LCP commended the swift response of the administration to engage in a dialogue with the mayors on this critical issue. 

With the dialogue the LCP pointed out that this “will enhance our ability to respond equitably to the urgent needs of our communities and will strengthen the relationship between local governments and national agencies for the greater good.’’

“The league has full faith in the Mandanas-Garcia ruling in its pronouncement that “the 1987 Constitution is forthright and unequivocal in ordering that the just share of the LGUs in the national taxes shall be automatically released to them,’’ the LCP noted.

“We are confident in our government that a meaningful resolution of this matter will redound to the benefit of every Filipino,’’ it continued.