DILG Legal Opinion No. 105-93

March 9, 1993 DILG LEGAL OPINION NO. 105-93 LEGAL SERVICE Mr. Edilberto M. Romero Barangay Captain Bgy. Daft, Surigao City Dear Sir : Relative to your telegram, requesting clarification regarding the power of the barangay to have licenses and business permits on stores or retailers whose gross sales is less than P50,000.00, may we invite your attention to Section 152 of Rep. Act No. 7160 (The Local Government Code of 1991) which provides, in part, that: "SEC. 152. Scope of Taxing Powers. The barangay may levy taxes, fees, and charges, as provided in this Code, which shall exclusively accrue to them: (a) Taxes On stores or retailers with fixed business establishments with gross sales or receipts of the preceding calendar year of Fifty Thousand Pesos (P50,000.00) or less, in the case of cities ... (b) ... (c) ...No city or municipality may issue any license or permit for any business of activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. ..."(Emphasis supplied) With the foregoing, we believe that a barangay can only levy taxes and other fees on establishments if their gross sales do not exceed fifty thousand (P50,000.00) pesos however, with regard to the issuance of business permits and licenses, only cities or municipalities are authorized under Rep. Act No. 7160 to issue it. Hoping to have enlightened you on the matter. Very truly yours, DIR. JACOB F. MONTESA Department Legal Counsel Department of Interior and Local Government