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Interior and Local Government Secretary Jesse Robredo has reiterated his appeal to all Local Chief Executives throughout the country to review all existing fees and charges passed and imposed by the barangays.

Robredo said he issued the directive to ensure that all fees and charges imposed by the barangays are fair, and only implemented after consultation with the people in the barangay.

Robredo issued the directives following the reports received by the DILG that some barangays are imposing excessive fees and charges, especially on the issuance of a Barangay Clearance.

“While Local Government Units have the power to create their own sources of revenues as provided under the Local Government Code of 1991, such power is not absolute as the Code itself has also provided certain limitations,” Robredo said.

The DILG Secretary said that mayors should ensure that all fees imposed by the barangays such as Barangay taxes, fees, charges and other obligations should be based on their constituents’ capability to pay.

Robredo emphasized that those fees will be collected only for public purposes and not contrary to law, public policy, or in the restraint of trade, as provided under Section 130 of the Local Government Code.

Under the Code, barangays may impose taxes on stores, or retailers, with fixed business establishments with gross sales/receipts of P50,000.00 or less for cities and P30,000.00 or less for the municipalities, at a rate not exceeding one percent on such sales.

Barangays are also allowed to levy fees or charges for services rendered in connection with the regulation or use of the barangay-owned properties or service facilities; for the issuance of barangay clearance; on commercial breeding of fighting cocks, cockfights and cockpits; on places of recreation with admission fees; and the billboards, signboards, neon signs and outdoor advertisements.

However, Robredo pointed out that LGUs have been given a certain degree of leeway to determine other possible sources of income aside from those enumerated in the Code.

“Any barangay may conceptualize other forms of income-generating sources, for as long as the restrictions and limitations are observed and the procedures surrounding the enactment of the revenue-raising barangay ordinances are complied,” Robredo said.

By Alfonso T. Ruda - PIA9-ZDN/ZBST