MANILA – The draft federal constitution provides for a 50-50 sharing between the federal government and the federated region of all revenues from income taxes, excise taxes, value added tax and customs duties.
In his presentation before the Senate Committee on Constitutional Amendments, Consultative Commission spokesman Conrado Generoso added that needy regions under the proposed charter would be given shares from an equalization fund, which shall not be less than three percent of the annual General Appropriations Act.
The federated regions shall also be entitled to 50 percent of all net revenues derived from the exploration, development, and utilization of all natural resources within their territory, he said, adding that the federal government may use its share to other regions which will need fund.
The committee tasked by President Rodrigo Duterte to draft the constitution for a federal Philippines denied allegations that the draft constitution would provide for double taxation thereby putting more burden on the people.
Former Senate President Juan Ponce Enrile recently said Filipinos would suffer from too much bureaucracy and added taxes once the government shifts to a federal form. (GMA News)
