Happy Independence Day! Facts about your Cedula (CTC)

Happy Independence Day!

To commemorate this day, we are setting you FREE of your questions about Cedula. Yes, yung pinunit nila Andres Bonifacio.

It was first introduced by the Spaniards as a result of abolishing "tribute." All residents above 18 y/o regardless of nationality are required to pay a "new" tax and a cedula was given as proof of residence and identification. It was later on renamed as residence tax and now commonly known as communitiy tax (certificate) or CTC.

Today, it is one of the required documents (but no longer solely relied upon) when dealing with government transactions.

The tax is primarily collected by the city or municipal government but can be delegated to Barangays and is due for payment on or before February 28. The BIR is responsible for its printing and distribution to municipalities so as why a portion of tax revenues from CTCs are remitted to national government.

Presently, there is a pending bill in Senate filed by Chiz Escudero to abolish the Community Tax and surely, this will cause resistance from LGUs.

We think the use of Cedula will soon be obsolete regardless of the passage of a bill once the National ID System signed by PRRD is fully rolled out. (Did you know that you can start registering for the National ID this coming July 2020? )

Obsolete or not, isn't it good to know more about this type of tax that you can trace back more than 122 years ago?

Source: National Tax Research Journals

#TaxBreak with #VPA