Manila: Former Interior Secretary and senatorial candidate Benjamin Abalos Jr. on Friday underscored the necessity of amending the Local Government Code, highlighting that the law, established over 31 years ago, requires updates to better align with current circumstances. "After three decades, we've seen the flaws. The objective was good, but we have to be practical. Some provisions are no longer feasible," he stated during an interview.
According to Philippines News Agency, Abalos pinpointed infrastructure projects such as village halls and schools, which are currently categorized as village and local government responsibilities, yet often necessitate national support due to financial constraints. He also highlighted the challenges faced by provincial governments in funding essential medical services, such as intubation and specialist care, indicating the need for a reevaluation of tertiary healthcare responsibilities.
Abalos emphasized that his proposals stem from consultations with governors, mayors, and village leaders. He advocated for enhanced benefits for job order workers, with a particular focus on productivity-based incentive pay, acknowledging the limitations imposed by the Commission on Audit and Department of Budget and Management policies. His suggested solution involves implementing a uniform incentive productivity pay, especially during Christmas and the end of the year, ensuring fair compensation for all job order workers without overburdening local government resources.
In addition, Abalos reiterated his call for the elimination of the Value-Added Tax (VAT) on electricity, arguing that this measure would reduce living costs and enhance the country's appeal to investors. While acknowledging concerns about potential revenue losses for the government, he contended that increased economic activity would compensate for the shortfall. "Okay, mawawalan ka nga ng sources (of revenues) from electricity pero dadami naman ang negosyo mo (Okay, you will lose sources of revenues from electricity but your business will increase)," he remarked.
Abalos first introduced a resolution on this issue in 2005, which led to a two-year moratorium on electricity VAT, and he remains optimistic about the economic benefits of his proposals. Citing a 2013 USAID study, he pointed out that Filipino households could save over PHP6,000 annually in electricity costs if the tax were abolished.
