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PH may lose investment grade ratings, infra funds if LGUs get share from nat’l taxes

The Philippines stands to lose its investment-grade credit ratings and may have to stop construction of big-ticket infrastructure projects if the Supreme Court ruling that grants local government units (LGUs) a share from “all” national taxes gets implemented, Budget Secretary Benjamin E. Diokno said.

As such, Diokno said they would ask the Office of the Solicitor General to file a motion seeking a reversal of the high court’s decision on LGU’s internal revenue allotment (IRA).

Last week, the Supreme Court ruled that the “just share” of LGUs’ IRA must come from all national taxes, not only from national internal revenue taxes as was the current practice.



Tags: Taxes Infrastracture