Lawmaker decries tax-sharing formula as unfavorable to coastal areas

MANILA — The current National Tax Allotment (NTA) sharing arrangement between the central government and local government units is inequitable to coastal communities, according to Agusan del Norte Representative Dale Corvera.

Cervera raised the concern on Monday, asserting that the existing budgeting formula does not adequately account for the unique needs and circumstances of communities dependent on coastal economies. He contended that the system's structure creates an inherent bias favoring regions with expansive land areas, thereby limiting resources available to maritime-dependent localities.

The lawmaker's statement highlights growing concerns among local officials regarding the equitable distribution of national revenues among local government units. The tax-sharing mechanism has long been a subject of debate among representatives from different regions seeking fair allocation of national resources based on their respective populations and economic conditions.

Cervera's remarks come amid broader discussions in Congress about reforming local government financing mechanisms to better reflect the diverse geographic and economic profiles of Philippine communities. Coastal regions have traditionally argued that current formulas fail to capture the economic significance of fishing, maritime trade, and tourism sectors that form the backbone of their local economies.