B. SHARED POWERS

Section 4 says “Powers not exclusively given to either the Federal Government or to the Federated Regions are shared powers… can be exercised jointly or separately. In case of dispute or conflict in their exercise, the federal power shall prevail.”

This refers to current functions by 10 Departments: CHEd, DA, DAR, DENR, DoE, DoH, DoLE, DoTr, DSWD, DILG-PNP. Also two constitutional bodies CoA and CSC. The implication then is that there will be 19 Departments of Agriculture, one federal and 18 state departments; 19 DAR, 19 DENR, 19 CoA, etc. This will cost a huge amount of taxpayer money to maintain.

Various government corporations under these agencies like DoE’s NPC, NEA, and PSALM very likely will remain under the Federal government.

C. EXCLUSIVE TAXATION POWERS BY THE STATES

Under Article XIII, Fiscal Powers and Financial Administration, Section 2, the state governments have the power to levy and collect the following taxes, licenses and fees, meaning they will be removed from the national/ federal government’s taxation powers:

“(a) Real Property Tax; ( b) Estate Tax; (c) Donor’s Tax; (d) Documentary Stamp Tax; (e) Professional Tax; (f) Franchise Tax; ( g) Games and Amusement Tax; ( h) Environmental Tax, Pollution Tax, and similar taxes; (i) Road Users Tax; ( j) Vehicle Registration Fees; ( k) Transport Franchise Fees; and (l) Local taxes and other taxes which may be granted by federal law.”

So by implication, the federal government will retain exclusive taxation powers over income tax (personal and corporate), excise, VAT, customs duties.

But the states will get “not less than fifty percent (50%) of all the collected taxes on income, excise, VAT, and customs duties, which shall be equally divided among them and automatically released.”

The federalism agenda of the Duterte administration therefore, is a dangerous, interventionist, tax- hungry scheme whose main purpose is to spur more political development, not economic development.

A big manufacturing plant or similar facility must secure a barangay

Businesses may be prompted to secure more permits and pay more taxes.