Bureau of Local Government Finance Opinion

April 20, 1993 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. A. Arman V. Lapus Policy Evaluation and Monitoring Office Presidential Management Staff PMS Bldg., Malacaang Annex Arlegui St., Metro Manila S i r : This refers to the Facsimile Cover Sheet dated March 30, 1993 of that Office in effect requesting comments on the request for ceiling on registration fees collected by Local Civil Registrars. It is represented under letter dated March 4, 1993 of the Administrator, National Statistics Office (NSO), Manila, that in the 2nd National Convention of Civil Registrars held at the Celebrity Sports Plaza on February 24-26, 1993 by NSO, civil registrars from all over the country encountered problems relative to exorbitant registrations fees imposed by some local governments. The said civil registrars arrived at a common consensus of wanting to put a ceiling for said fees collected by local civil registrars which is now the matter sought by the Administrator of the NSO. In this connection, please be informed that the imposition of the said registration fees beginning January 1, 1993 is vested with the local governments, thru the enactment of the appropriate ordinance by their corresponding sanggunians' provided for under Sec. 154 of RA No. 7160 as implemented under Art. 244 of the Implementing Rules and Regulations (IRR) which stated: "Art. 244. Common Revenue Raising Powers . Provinces, cities, municipalities and barangays: "(a) May impose and collect fees and services or user charges for any service rendered by it in an amount reasonably commensurate to such service, provided , however , that no service charge shall be based on capital investment or gross sales or receipts of the person or business liable therefore." (Emphasis supplied) Moreover, in addition to the aforequoted conditions, the appropriate ordinance on the subject must also observe the conditions provided for under Sec. 186 of RA No. 7160 which states: cd i "Sec. 188. Power to Levy Other Taxes, Fees or Charges . Local government units may exercise the power to levy taxes, fees, or charges . . ., That the taxes, fees or charges shall not be unjust, excessive, oppressive, confiscatory or contrary to declared national policy: Provided, further , that the ordinance levying such taxes, fees or charges shall not be enacted without any prior public hearing conducted for the purpose." It may be observed from the aforequoted provisions that RA No. 7160 does not prescribe any fixed amount or ceiling for the rates of civil registration fees or other charges that the local sanggunians may impose in local tax ordinances. On the other hand, there is no national department or agency that is authorized under the Code to determine whether the rates of local taxes, fees and charges are unjust, excessive, oppressive confiscatory, or contrary to declared national policy. The only possible recourse of parties in interest would be to express their views during the conduct of the public hearings required by the Code. Very truly yours, LORINDA M. CARLOS Executive Director