BUWIS NG MINDANAO PARA SA MINDANAO!

Fight for 80-20 Revenue Share!

Only a small fraction that people in Mindanao pay for their taxes goes back to them. Approximately, 54-60% of the taxes that the government collects come from Mindanao. But even so, Mindanao is lagging behind Luzon and Visayas in terms of overall economic development and even in literacy rate.

Advocating for Federalized Revenue Sharing

Under the current fiscal setup, the national government takes the largest share of all taxes collected and retains the right to allocate the budgets to the LGUs (Local Government Units) according to certain requirements. However, reversing the revenue allocation by giving the national government 20% of the total taxes collected while allowing the local governments to retain 80% of the share, can prevent so many issues arising from government inefficiency and ineffectiveness.

Placing the power of taxation more to the local governments could mean greater accountability because it would make the political costs of project and budgetary proposals in line with the social costs. Local government units are in the best position to determine what’s best for them. The 80-20 share can help promote efficiency in government's fiscal activities by encouraging competition among local government units. Quality tax-related decision-making and the ability to spur vibrant economic activities would become a necessity since self-reliance would force local voters to re-evaluate their voting behavior. This would make them re-think of selecting leaders who would best articulate their interests in the context of financial reality and discipline.