Local Government Code of the Philippines

THE LOCAL GOVERNMENT CODE OF THE PHILIPPINES
BOOK II
LOCAL TAXATION AND FISCAL MATTERS
TITLE ONE. – LOCAL GOVERNMENT TAXATION CHAPTER 1. – GENERAL PROVISIONS

SECTION 128. Scope − The provision herein shall govern the exercise by provinces, cities, municipalities, and Barangays of their taxing and other revenue−raising powers.

SECTION 129. Power to Create Source of Revenue − Each local government unit shall exercise its power to create its own sources of revenue and to levy taxes, fees, and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local government units.

SECTION 130. Fundamental Principles. − The following fundamental principles shall govern the exercise of the taxing and other revenue−raising powers of local government units:

(1)

Taxation shall be uniform in each local government unit;

(2)

Taxes, fees, charges and other impositions shall:

(a)

be equitable and based as far as practicable on the taxpayer's ability to pay;

(b)

be levied and collected only for public purposes;

(c)

not be adjust, excessive, oppressive, or confiscatory;

(d)

not be contrary to law, public policy, national economic policy, or in restraint of trade;

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

(4) 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,

(5)

Each local government unit shall, as far as practicable, evolve a progressive system of taxation.

SECTION 131. Definition of Terms. − When used in this Title, the term:

(6) "Agricultural Product" includes the yield of the soil, such as corn, rice wheat, rye, hay, coconuts, sugarcane,