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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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- Winter '13
- Revenue, ........., Olongapo City, Tax rates around the world