Village leaders oppose ordinance regulating clearance fees

ANGELES CITY – Some barangay officials here are opposing a proposed ordinance that regulates the imposition of barangay clearance fees by barangay councils.
Balibago Chairman Rodelio “Tony” Mamac described the ordinance as ultra vires or beyond the powers of the City Council as it will amend Section 152 (C) of Republic Act 7160 or the Local Government Code.
Section 152 (C) stated that “no city or municipality may issue any license or permit for any business or activity unless a clearance is first obtained from the barangay where such business or activity is located or conducted. For such clearance, the sangguniang barangay may impose a reasonable fee.”
The provision further said the application for clearance shall be acted upon within seven working days from the filing thereof. In the event that the clearance is not issued within the period, the city or municipality may issue the said license or permit.
Mamac said the City Council cannot amend RA 7160, passed by Congress, by a mere ordinance. The scope of the legislative power of the City Council as enumerated under Section 458 of RA 7160 does not specify the power to regulate the imposition of barangay clearance.
The village chief also stressed that the Sangguniang Barangay has the exclusive police power to impose a reasonable fee in securing a barangay clearance.
The ordinance, proposed by Councilor Willie Rivera, stated that the Council received several complaints from businessmen regarding the charging of exorbitant or unreasonable fees for barangay clearance in securing business permit.
Rivera said it has been a practice by many barangay councils to impose taxes to business establishments based on the gross sales or receipts, which at times higher than the tax and fees imposed by the City Government.
Rivera said a barangay council cannot impose tax because it is the function of the city and this will result into double taxation.
“Barangay councils may collect regulatory fee from business establishments but not tax,” Rivera said.
Barangay councils may only impose a rate not exceeding one percent or P500 from businesses with gross sales not exceeding P50,000.
Rivera claimed that many barangay leaders don’t know the distinction of a regulatory fee and a tax.
But Mamac said each local government unit implements a progressive system of taxation.
“To impose a barangay clearance of P1,000 to a business activity with gross sales of P500,000 and a barangay clearance of P1,000 to business activity with gross sales of P10 million is unfair,” Mamac said.
Mamac is also questioning the penal clause of the proposed ordinance, stating that any barangay official who prevents, fails, neglects to issue the required barangay clearance within the prescribed period of seven days from filing may be suspended or removed from office.
Mamac claimed that in the event that the barangay concerned fails to act on the application within seven days, the City Government may issue the license or permit applied for despite the absence of a barangay clearance.
The power to remove erring elective local officials from service is lodged exclusively with the courts, Mamac said.
Pulung Maragul Barangay Chairman and Liga ng mga Barangay President Jojo Dimapiles said the proposed ordinance is still being studied in the committee level.
Dimapiles said they will ask Rivera to include in the ordinance the charging of a flat rate of P1,000 regulatory fee on business establishments.
Published in the Sun.Star Pampanga newspaper on February 27, 2012.

http://www.sunstar.com.ph/pampanga/local-news/2012/02/26/village-leaders-oppose-ordinance-regulating-clearance-fees-208225

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