Local Revenue Producing Tax Administration: The Gold Experience

Abstract

The first requisite in raising financial capability of Local Government Units is to grant them power and authority to generate revenues. This is mandated in the 1987 Constitution and granted, in a limited degree, under the powers stipulated by the Local Government Code of 1991. The second requisite in strengthening local fiscal adequacy is the presence of sufficient tax objects. That is, the powers and authority provided to LGUs may not be used productively if there are no adequate tax bases to which those powers may be applied. The third requisite is an efficient and effective tax administration. That is, the newly granted taxing powers to the LGUs can be useless if taxes are not collected wisely and cost-effectively. This paper singles out a few of these issues drawn from the 1991-1995 experiences of municipalities in six of ten sites covered by the GOLD project, namely: Bulacan, Bohol, Nueva Vizcaya, Capiz, North Cotabato, and Sarangani.