Only Congress can amend, repeal cedula law, says lawmaker

MANILA, Philippines - A leader of the House of Representatives warned yesterday the Bureau of Internal Revenue (BIR) against abolishing the cedula, saying only Congress can scrap, amend or repeal the community tax certificate (CTC) law.

House Deputy Majority Leader and Valenzuela City Rep. Magtanggol Gunigundo said the CTC or residence certificate is mandated by the Local Government Code or Republic Act 7160.

“Only Congress can abolish, amend or repeal it,” Gunigundo said.

Since the CTC is a local tax, he said the collections are divided equally by the city and the barangay that issued the certificate.

The lawmaker said the BIR should not make “reckless remarks” on unilaterally abolishing the CTC as it is not within its authority to do so.

The CTC levying, exemptions, place and time for payment, and printing and distribution of CTC copies are provided in Book II of RA 7160 pertaining to Local Taxation and Fiscal Matters, under Article 6, Sections 156 to 164 of Chapter 2 (Specific Provisions on the Taxing and Other Revenue-Raising Powers of LGUs).

The law provides that the proceeds of the community tax actually and directly collected by the city or municipal treasurer shall accrue entirely to the general fund of the city or municipality concerned. However, proceeds of the community tax collected through the barangay treasurers shall be apportioned as follows:

Fifty percent shall accrue to the general fund of the city or municipality concerned; and 50 percent shall accrue to the barangay where the tax is collected.           

Last week, BIR Commissioner Kim Jacinto-Henares said if it were up to her, she would “rather do away with the CTC,” since government transactions that used to require it no longer do so.

She also said that in many places, the cedula has become like a “joke,” with people buying it “from just any place,” which means it does not go to government coffers, not even to the LGUs.

She said the national government pays for the printing of the certificates but the collections go directly to LGUs.

Section 164 of Article 6 of Book 2, Chapter 2 of RA 7160 provides “the Bureau of Internal Revenue shall cause the printing of community tax certificates and distribute the same to the cities and municipalities through the city and municipal treasurers in accordance with prescribed regulations.