Can the national government arbitrarily withhold the tax shares of local government units? The national government is strictly prohibited from arbitrarily withholding the shares of local government units in national taxes. The fundamental law explicitly commands that these funds shall be automatically released to the respective local units. This mechanism prevents the national government from ever using these vital funds as political leverage against local officials. The mandatory and automatic nature of this fund release is ordered by Article X, Section 6, 1987 Philippine Constitution. “SECTION 6. Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.” 06-Mar-26 About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
