Manila, Sept. 8 -- In a bid to increase the local government units' (LGU) revenue collection, Senate President Vicente C. Sotto III has proposed to amend the "Situs of the Tax" provision in RA 7160 or the Local Government Code of 1991.
Situs, in tax parlance, refers to the place of taxation.
Prior to the passage of RA 7160, the practice of allowing businesses to pay their taxes in Metro Manila where they keep their principal offices, even if most of their earnings come from their operations in provinces, has been the subject of numerous complaints of local government units (LGUs), according to Sotto.
"The Local Government Code of 1991 provided solution for such grievances. However, from the time of its effectivity on Jan. 1, 1992, most L...