MANILA—A priority legislation filed before the 80-seat Bangsamoro Transition Authority (BTA) Parliament is expected to generate revenue to boost regional economy in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
During BTA’s learning session organized by the Ministry of Finance, and Budget and Management (MFBM) and supported by the Asian Development Bank (ADB), finance experts, economist, and legal luminaries gathered in Manila on April 16-17, 2024 where policy, economic, and cultural considerations, salient features, and process of formulating the proposed code were discussed.
MFMB said that pool of experts were engaged to ensure that all factors relative to revenues both for tax and non-tax collections are included in the formulation of the fiscal and revenue measures. The ministry confirmed that the proposed measure is continually enhanced to ensure that it could support the local economy and the region’s fiscal autonomy.
MFBM Minister Atty. Ubaida Pacasem emphasized that the proposed revenue code represents an important framework for the generation and management of resources that are crucial for the sustainable growth and development of BARMM.
“It is a testament of the continuing commitment of the Bangsamoro Government in its aspiration for self-determination and exercise of fiscal autonomy,” Pacasem added.
Moral Governance advocate BARMM Chief Minister Ahod Ebrahim said that the revenue code underwent extensive review and consideration to ensure alignment with the development goals of the BARMM and existing laws and regulations.
“As we repeatedly say, the immediate enactment of the Bangsamoro Revenue Code will further enhance the fiscal autonomy of the Bangsamoro Government, which will eventually contribute to self-sufficiency and genuine development in the autonomous region,” Ebrahim said in a video message.
Meanwhile, ADB Country Director Pavit Ramachandran who personally graced the occasion affirmed ADB’s commitment in supporting the BARMM.
He shared that ADB has opened its doors for the BARMM and they are grateful in pursuing a genuine peace and development in the region.
Legal basis for the revenue revenue code
After decades of conflict pluralized by injustices against the Bangsamoro people, peace agreements (Framework Agreement on the Bangsamoro in 2012 and Comprehensive Agreement on the Bangsamoro in 2014) were signed by the Philippine government and the Moro Islamic Liberation Front (MILF), witnessed by the international community.
These peace accords were monumental in the establishment of the new parliamentary government enabled by the Republic Act 11054 or the Bangsamoro Organic Law (BOL) in August 2018.
As stipulated in the BOL, one of the primary duties of the BTA parliament is the enactment of priority codes during the transition period—the revenue code being one of them.
Section 6, Article XII of the said law stated that “The Bangsamoro Government shall have the power to create its own sources of revenues and to levy taxes, fees, and charges, subject to the provisions of this Organic Law and consistent with the principles of equalization, equity, accountability, administrative simplicity harmonization and economic efficiency, and fiscal autonomy”.
On these legal grounds, BARMM has formulated its own revenue code among other vital legislations.
Support from BTA members
Physician Kadil Sinolinding of the BTA Parliament believed that revenue code could be an opportunity for the Bangsamoro people to generate its own income citing that collected revenue would be used for services.
“Revenue is the lifeline of our government and generation is the process where we can continue and sustain that lifeline,” he explained.
Sinolinding further explained that taxes and other form of government revenues do not intend to become a burden to the constituents as collected revenues return to the people in forms of government services.
On the other hand, newly-appointed parliament member Jamel Macacua —scion of appointed Governor of Maguindanao del Norte and former BTA member Abdulrauf Macacua— also hold the same view that revenue generation is essential citing the lifeblood doctrine in taxation where revenues fueled government operations.
“Aside from the block grant, the Bangsamoro Revenue Code will provide other sources of revenue so that BARMM can continually function well,” Macacua said.
In another lense, Deputy Speaker Atty Lanang Ali Jr explained during the discussions that BARMM shall promote revenue collection to propel the economy.
“We shouldn’t be dependent on the block grant alone, we need to find ways on how to generate revenues,” Ali said. (Abdullah Matucan/BIO)
