Maricel D.

Cueva
LLB 3B
• Based on the Constitutional grant of the
power to tax to the local governments
• Local taxes may be imposed to each local
government unit
the power to create its own sources of revenues
and to levy taxes, fees, and charges which shall
accrue to the local governments (Art. X, Sec. 5)
• With respect to national taxes, local
government units shall have a just share, as
determined by law, in the national taxes
which shall be automatically released to them
(Art. C, Sec. 6).
 Charges

the pecuniary liability, as rents or fees

against persons or property

 Fees

charge fixed by law or ordinance for the

regulation or inspection of a business
activity
 Taxation shall be uniform in each local
government unit;
 Taxes, fees, charges and other impositions
shall:
 Be equitable and based as far as practicable on
the taxpayer’s ability to pay;
 Be levied and collected only for public purposes;
 Not be unjust, excessive, oppressive, or
confiscatory;
 Not be contrary to law, public policy, national
economic policy, or in the restraint of trade;
 collection of local taxes, fees, charges, and other
impositions shall in no case be let to any private
person;
 revenue collected pursuant to the provisions of
this Code shall inure solely to the benefit of, and
be subject to disposition by, the local
government unit levying the tax, fee, charge, or
other imposition UNLESS otherwise specifically
provided; and
 each LGU shall, as far as practicable, evolve
progressive system of taxation.
 Service Fees and Charges
LGUs may impose and collect such reasonable fees and
charges for services rendered

 Public Utility Charges

LGUs may fix the rates for the operation of public utilities
owned, operated and maintained by them within their
jurisdiction

 Toll Fees or Charges

The Sanggunian concerned may prescribe the terms and
conditions and fix the rates for the imposition of toll fees or
charges for the use of any public road, pier, or wharf, waterway,
bridge, ferry, or telecommunication system funded and
constructed by the LGU concerned
 Cities:
Provinces : Municipalities:
It may levy and collect
1. Tax on Transfer of 1. Business Tax;
among others any of
Ownership of Real 2. Fishery rental or fess
the taxes, fees, and
Property; and charges;
other impositions that
2. Tax on Business of 3. Fees for sealing and
the province or
Printing and licensing of weights
municipality may levy
Publication; and measures;
and collect.
3. Franchise Tax;
4. Sand and Gravel Tax;
Barangays:
5. Professional Tax; 1.Tax and fees on stores or retailers;
6. Amusement tax on 2.Service charges;
admission; and 3.Barangay Clearance; and
7. Annual Fixed tax per 4.Other fees and charges
delivery truck or van • On commercial breeding of fighting cocks,
on manufacturers or cockfights, and cockpits;
dealers in certain • On places of recreation which charge admission
products. fees; and
• On billboards, signboards, neon signs, and
outdoor advertisements.
 Income tax, EXCEPT when levied on banks
and other financial institutions;
 Documentary Stamp Tax;
 Taxes on estates, inheritance, gifts, legacies,
and other acquisitions mortis causa, EXCEPT
as otherwise provided in the LGC (EXCEPT
taxes levied on the Transfer of Ownership of
Real Property under Sec. 135 and 151 of the
same)
 Customs duties, registration fees of vessels
(EXCEPT license fees imposed under Sec 149
and 151 of the Code), wharfage, tonnage dues
and all other kinds of customs fees, charges and
dues except wharfage on wharfs constructed
and maintained by the LGU concerned;
 Taxes, fees, charges, and other impositions upon
goods carried into or out of, or passing through,
the territorial jurisctions of local governments in
the guise of charges for wharfage, tolls for
bridges or otherwise, or other taxes in any form
whatever upon such goods or merchandise