NAME: Eugene EJ C.

Ramirez DATE: April 29, 2023

COURSE/YR/SECTION: BSMA 4A

EXERCISE II
LOCAL GOVERNMENT TAX:
1. What are the fundamental principles of Local Government Unit (LGU) Tax
Powers?

• 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 adjust, excessive, oppressive, or confiscatory;
- not be contrary to law, public policy, national economic policy, or in
restraint of trade;

• The collection of local taxes, fees, charges and other impositions shall in
no case be let to any private person;

• The 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 herein; and,

• Each local government unit shall, as far as practicable, evolve a

progressive system of
taxation

2. What are the common revenue- raising powers of the LGU? Explain.
3.
• Service Fees and Charges
Local Government Units have the authority to levy and collect acceptable fees and
charges for services rendered.

• Public Utility Charges

Local government units have the authority to set rates for public utilities that they own,
operate, and maintain within their jurisdiction. The Sanggunian establishes the rates for
the imposition of toll fees or charges, establishes the terms and conditions, and
authorizes the use of any public road, pier, wharf, waterway, bridge, ferry, or
telecommunication system funded and built by the local government unit in concerned.
4. Provide examples of taxes that may be impose by the following: (at least two
each)
a. Provinces
• Amusement Tax
• Tax on Sand, Gravel and Other Quarry Resources
b. Municipalities
• Payment of Business Taxes
• Retirement of Business
c. Cities
• Payment of Business Taxes
• Franchise Tax
d. Barangays
• Barangay Clearance
• Taxes on stores or retailers with fixed business establishments with
gross sales or receipts of the preceding calendar year of Fifty Thousand
pesos (P50,000.00) or less, in the case of cities and thirty thousand pesos
(P30,000.00) or less, in the case of municipalities, at a rate not exceeding
one percent (1%) on such gross sales or receipts.

5. Name at least ten (10) taxes that may not be imposed by the local government.
units.

• 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 herein;
• Taxes, fees, or charges on agricultural and aquatic products when sold by marginal
farmers or fishermen;
• Excise taxes on articles enumerated under the National Internal Revenue Code, as
amended, and taxes, fees or charges on petroleum products;
• Taxes on premium paid by way or reinsurance or retrocession;
• Taxes, fees or charges for the registration of motor vehicle and for the issuance of all
kinds of licenses or permits for the driving thereof, except tricycles;
• Taxes, fees or charges on Philippine products actually exported, except as otherwise
provided herein
• Percentage or value added tax (VAT) on sales, barters or exchanges or similar
transactions on goods or services except as otherwise provided herein;
 • Taxes, fees or charges, of any kind on the National Government, its agencies and
instrumentalities, and local government units.

6. Identify and explain the civil remedies for collection of revenues of LGU?

The civil remedies for the collection of local taxes, fees, or, and surcharges and
interest resulting from delinquency shall be:

• By administrative action thru distraint of goods, chattels, or effects, and

other personal of whatever character, including stocks and other
securities, debts, credits, bank accounts, and interest in and rights to
personal property, and by levy upon real property and interest in or rights
to real property; and
• By judicial action. Either of these remedies or all may be pursued
concurrently or at the discretion of the local government unit concerned.
The judgement in the criminal cases shall not only impose the penalty but
shall also order payment of the taxes subject of the criminal cases as
finally decided by the Commissioner.

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