Aklan SP Requests DOF To Reclassify Aklan from 2nd To First Class

Kalibo, Aklan-The Aklan Sangguniang Panlalawigan, during its 12th regular session on September 22, 2010 has passed, a resolution requesting the Secretary of the Department of Finance to reclassify the province of Aklan from 2nd to 1st class, considering that the province has already attained an average annual income from Cy 2005 to Cy 2008 to a level more than prescribed by Executive Order No. 249 dated July 25, 1987 and Department Order No. 23-08 of the Department Of Finance dated July 29, 2008.

The province of Aklan generated annual incomes, based on the audited income report from the Office of the Provincial Accountant and duly certified by the Commission on Audit, as follows: CY 2005-Php 365,434,927.75; CY 2006 – Php 461,939, 623.14; CY 2007 – Php 515,979,364.17; and CY 2008 –Php 650,347,960.26. The general reclassification period fixed by Department Order No. 23-08 is from 2008-2011 following the reckoning period of four years.

In Resolution No. 2010-086, the SP stressed that it is unfair and disadvantageous to the province if its reclassification shall be effective 2011 yet, as it will defeat the purpose of classifying local government units income class spelled out in Executive Order 249 which states that “the income classification of provinces, cities and municipalities serves, among other purposes, as basis for fixing the maximum tax ceilings imposable by the local governments, for determining administrative and statutory aids, financial grants and other forms of assistance to local governments, and for the implementation of salary laws and administrative issuances on allowances and emoluments that local government officials and personnel may be entitled to”.

The SP emphasized that the period of reckoning the average annual income for reclassification purposes of local government units had been pegged by Department Order No. 23-08 from 2004 to 2007 and from 2008-2011. However, Executive Order No. 249 does not bar the reclassification of certain Local Government Units earlier than the prescribed period as it has already attained an average annual income prescribed by Department Order No. 23-08 during the last four (4) years, in the case of Aklan, it has even exceeded the prescribed income bracket for reclassification as first class since 2006 up to 2009.

Aklan SP said that it is but fitting and proper that Aklan be particularly reclassified as first class as soon as possible in keeping with the intent and purposes of Executive Order No. 249 and as an exemption to the reckoning period set by Department Order No. 23-08, Aklan SP added.