For both property and business tax the lgc allows

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Unformatted text preview: , the LGC allows higher ceilings on the tax rate than were previously allowed. With regard to business tax, the LGC increases the tax base by allowing local government units to tax banks and financial institutions and natural resource extractions. For property tax, it allows the local planning council to adopt assessment levels lower than or equal to those given in the LGC. Share of internal revenue is divided among the provinces, cities, municipalities and barangays". The transfer is allocated based on a formula that includes population, land area and equal sharing of resources. The LGC also encourages sub-national borrowing and donations from private and foreign sources. The LGC bestows substantial power to the local planning councils and the chief executive- the Mayor. administrative decentralization: deconcentration, deregulation, devolution and privatization. Level of autonomy of the 'decentralized organization' increases in latter cases. 8 Barnagay is the smallest physical and political unit of a local government organization. Figure 2.1 Local Government Or...
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