Bacolod Mayor Greg Gasataya ordered all barangays to stop collecting unauthorized business taxes and clearance fees that violate the Local Government Code (LGC).
He said the move responds to complaints from businesses and aims to protect both entrepreneurs and barangay officials from legal issues.
Gasataya clarified that barangay taxing powers are limited to small retailers with gross sales not exceeding ₱50,000 and capped at one percent under the law.
He also prohibited the use of sales-based or percentage-based systems for clearance fees, stressing they must only cover regulatory costs.
Barangays are required to submit their tax ordinances for review and amend or repeal any illegal provisions, with the Department of the Interior and Local Government tasked to monitor compliance.
Source: PhilNews24 | April 19, 2026
