THE House Committee on Constitutional Amendments is set to approve on Wednesday the proposed Charter change (Cha-cha), which will include the recommendations of Inter-Agency Task Force on Constitutional Reform.
Cagayan de Oro City Rep. Rufus Rodriguez, committee chairman, said his panel is treating the task force’s recommendations as the administration’s Cha-cha proposals because it was President Duterte who created the group.
Rodriguez said the clamor among local government units for a larger share of tax collections by the national government stems from a recent Supreme Court ruling that provinces, cities, towns, and barangays throughout the country are entitled to allocations bigger than what they are presently receiving.
At present, the lawmaker said Internal Revenue Allotment (IRA) is computed based on “internal revenue taxes,” or those collected by the Bureau of Internal Revenue, saying they do not include collections by the Bureau of Customs.
The Supreme Court ruling, however, expanded the base to include not only taxes collected by the BIR but Customs as well, and other impositions, including half of value-added tax from the autonomous Muslim region, 60 percent of levies from the exploitation of natural wealth, and half of VAT on the sale of goods and properties.
Moreover, Rodriguez, citing a study done by the Department of the Interior and Local Government (DILG), said LGUs would have a total of P1.116 trillion in IRA in 2022 with the SC ruling.
“We will decide what recommendations of the Inter-Agency Task Force on Constitutional Reform we will include in our report to Speaker Alan Peter Cayetano and the plenary,” he said.
He said the common recommendations include electing senators by region, fixing a five-year term of office for local officials and House members, and lifting foreign ownership restrictions.
“In the case of the regional election of the Senate, the task force is proposing the creation of 17 regions with two senators each for a total of 34, while in our initial report, we recommended nine regions with three senators each for a total of 27. But at least, there is consensus on the election of senators by region. In the present Senate, there is no representation from Muslim Mindanao,” he said.
As for the term of office, Rodriguez added that the Año panel is recommending five years with one reelection, while his committee is for two reelections.
“We are one in suggesting the lifting of economic restrictions so the country could attract more foreign investors. More foreign investments will translate into more jobs and income for our people,” he added.
Among the other proposals of the adminis-tration’s Cha-cha task force are provisions against political dynasties and turncoats, creation of regional authorities, allocation of a larger share of national revenues for local government units, and state subsidy for political parties.
Rodriguez said the group conducted nationwide consultations before submitting its recommendations to his committee.
Interior Secretary Eduardo Año chairs the task force, with Justice Secretary Menardo Guevarra as its vice chairman. It is composed of nine agencies.