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Ilocos Norte Second District Representative Angelo Marcos Barba is preparing to file legislation that would raise the National Tax Allotment for local government units by 5 percentage points to strengthen local fiscal autonomy under the Mandanas-Garcia framework.
Barba announced the proposal during a meeting with leaders of the advocacy group LokalGovPH, seeking to build support among local government stakeholders before formally introducing the measure in Congress.
Under the proposed bill, the additional 5 percent share in national taxes would be phased in gradually at 1 percentage point annually to allow for a smoother fiscal transition.
To prioritize basic service delivery, 70 percent of the additional allocation would go directly to municipalities. The remaining 30 percent would be divided equally among provinces, cities, and barangays, with each receiving 10 percent.
The measure also introduces an Income Classification Equalization Factor designed to direct greater financial support to lower-income municipalities and reduce development disparities across regions.