Board Members approves ordinance granting Tax Amnesty on Incurred Penalties, Interests on Certain Provincial Taxes

By: Rafael C. Mosuela, GPC-SP | Date: November 9, 2021

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The Sangguniang Panlalawigan had approved during its regular session on November 9, 2021, Ordinance no. 346-2021, Granting Tax Amnesty on Incurred Penalties, Interests, and Surcharges on certain Provincial Taxes, Fees and Charges.

In an ordinance authored by Board Member Christian I. Rivera, grants tax amnesty on appropriate penalties, interests, and surcharges on all overdue accounts emanating from unpaid provincial taxes, regulatory fees for the years 2019 to 2021, except surcharges and interests arising from unpaid real property taxes and taxes on the transfer of real property ownership, within the Province of La Union.

Due to the Community Quarantine brought about by COVID-19, businesses are interrupted, sources of livelihood have been affected, and to help taxpayers, the Provincial Government of La Union had granted tax amnesty.

Stated in section 192 of RA. No. 7160, otherwise known as the Local Government Code of 1991, Local Government Units (LGUs) may, through ordinances duly approved, grant tax exemptions, incentives, or relief under such terms and conditions as they may deem necessary.

Under Section 2 of the same ordinance, all corresponding accrued penalties, interests, and surcharges, within the scope of Section 1 shall be deemed waived upon full payment of the principal amount of the basic tax, fee, or charge.

It was also emphasized in the ordinance that All taxes paid under this ordinance shall first be applied to tax delinquencies in the previous years until all the deficiencies shall have been paid in full. Should a taxpayer fail to pay in full or settle all the subsisting provincial tax delinquencies within the effectivity of this ordinance, the outstanding penalty, interest and surcharge shall again become due and demandable and the previous payments made, if any, shall be applied thereto. For taxpayers who have partially paid their taxes before the effectivity of this ordinance through compromise agreements, installments, or staggered payment methods, they may opt to pay the remaining balance in full during the effectivity of this ordinance. The remaining surcharges, penalty, and interest, when applicable, shall then be waived.

“The measure was made to help taxpayers from the impact caused by the virus. And that the community quarantine has impacted the daily lives of our constituents in the province, affecting their means of livelihood,” Rivera said.

The tax reliefs may be availed from the date of effectivity of this ordinance until December 29, 20Q21, only.