Local executives seek Supreme Court clarification on tax share

Quezon City Mayor Joy Belmonte announced that local executives are considering a petition to the Supreme Court. They seek clarification on how deductions are applied to the 40% share of local government units (LGUs) from national revenues. The 2019 Mandanas-Garcia ruling increased LGUs' share to 40% of all national taxes. However, local officials claim they currently receive only 32 to 34% due to various deductions, which they argue may not comply with constitutional guidelines. Belmonte highlighted that many deductions identified by the Department of Finance may not qualify as special purpose funds. Local leaders aim to clarify whether these deductions should occur before calculating the 40% share.