The Department of Finance (DoF) has reiterated its commitment to transparency and strict adherence to Supreme Court rulings and relevant laws in determining the National Tax Allotment (NTA) shares for local government units (LGUs).

"We assure our LGUs that we are strictly adhering to transparency and accountability, especially with the principles set by the Supreme Court, in implementing the Mandanas-Garcia ruling," Finance Secretary Ralph G. Recto said in a statement.

"Nothing is shortchanged. We are very much welcome and open to having continued dialogues with our LGUs to help them strengthen their fiscal capacities and optimize resource utilization to deliver more and better services to Filipinos," he added.

The 2019 Mandanas-Garcia Supreme Court ruling, which took effect in 2022, significantly increased the NTA shares of LGUs to 40 percent of all national taxes collected beyond those collected by the Bureau of Internal Revenue (BIR).

This landmark decision aimed to enhance the fiscal autonomy of LGUs by granting them a more substantial share of the national tax base.

In its decision, the Supreme Court ordered the Secretary of the DoF, the Secretary of the Department of Budget and Management (DBM), the Commissioners of the BIR and the Bureau of Customs (BOC), and the National Treasury, to include all national tax collections in the computation of the NTA base, "except those accruing to special purpose funds and special allotments for the utilization and development of the national wealth."

In determining the deductions, the DoF is guided by the Supreme Court decision, including Section 29 (3), Article VI and Section 7, Article X of the 1987 Constitution.

The Finance chief is scheduled to meet with the League of Cities this week to discuss the computation of the NTA and address any concerns raised by local officials.