JONALYN E.

ARELLANO
MBA-1A
ACTIVITY 2

REACTION PAPER ON THE CERTIFICATION PROGRAM ON FISCAL MANAGEMENT -

LOCAL GOVERNMENT TAXATION

PART 1: SUMMARY
The Certification program on fiscal management on Local Government Taxation was conducted
by KSU in a person of Engr. Jeffrey L. Uyam, the Provincial Assessor of Kalinga the speaker of the
said seminar. The LGU has a dual status, the public or government and the private or corporate.
Limited and Not Inherent are the taxing power of LGU under the autonomous region. Aspects
of local taxation is levy of taxes, fees and charges and real property taxation. In governing local
taxation its principles must not be contrary to law, public policy, national economic policy or in
restraint of trade, collection shall in no case be let to any person, revenues collected shall
ensure solely to the benefit of, and subject to disposition by, the levying the tax, each LGU as
far as practicable evolve a progressive system of taxation. Province, municipalities, and
barangays are the taxing and other revenue raising powers of the LGU. Under province, tax on
the real property, tax on the business of printing and publication, franchise tax, sand & gravel
tax, professional tax, amusement tax and tax on delivery vans/trucks of manufacturers. While
under municipalities business tax, fees for sealing and licensing of weights & measures and
fishing rentals, fees & charges. In Barangays are the taxes on stores or retailers, service fees or
charges, barangay clearance, other fees and charges and community tax certificate. The
distribution of proceeds of province is 35%, municipality/city is 40% and barangays is 25%.
PART 2: REACTION
Am so thankful for attending the seminar even in a short while to refresh our minds and gained
additional knowledge on the said topic. One of my reaction apart from filing and paying taxes, it
is also important to know and understand what taxes you must pay, why you have to pay taxes,
and where your taxes go. Since, one of the example Sir Jeff says someone paid not knowing he
is paying the tax on delivery vans/trucks of manufacturers where in fact he is a contractor
delivering its materials in construction project who must not pay. Compliance with tax laws is
also important to keep the system working for all and supporting the programs and services
that improves lives in the local government. “Paying taxes are key in making nation-building
possible”.
To many of us, payments of Community Tax has become a mere compliance rather than an
obligation. How many of us faithfully paid our community tax this year? I for one agreed this
that not all has paid CTC in our place that there is a need to implement for coming years. The
city/municipal treasurer shall deputize the barangay treasurer to collect in their respective
jurisdiction. The proceeds of the community tax actually and directly collected by the city
treasurer shall accrue entirely to the general fund of the city/municipality concerned. However,
proceeds of the community tax through the barangay treasurer shall be apportioned as follows:
50% shall accrue to the general fund of the city/municipality concerned, and 50% shall accrue
to the barangay where tax is collected. That is why we need to encourage and help the
barangay treasurer to collect more and let them pay for the community tax of the people who
must pay. Lastly, we must also be aware of the dates to avoid penalties and interest charges for
late payment and pay early to avoid long queues.
Being a responsible citizen, it’s both your right and responsibility to learn about taxes and how
to pay them right. Part of becoming a financially independent adult is understanding the basics
of tax. After all, it’s your hard-earned money we’re talking about.