Assessing Local Revenue Code Implementation: Perceptions of Micro-Entrepreneurs in Libmanan, Camarines Sur

Abstract

This study evaluated the implementation of the Local Revenue Code (LRC) in the Municipality of Libmanan, Camarines Sur, as perceived by micro-entrepreneurs. Specifically, it determined the perceived effectiveness of Local Revenue Code implementation in terms of tax enforcement mechanisms, administrative practices, and institutional capacity, as well as the implementation challenges and best practices encountered by micro-entrepreneurs in complying with local taxation requirements. The study was anchored on Fiscal Federalism Theory, Institutional Capacity Theory, and Compliance Theory. The study utilized a quantitative descriptive research design. A total of 304 registered micro-entrepreneurs were selected through stratified random sampling from 1,452 registered micro-enterprises in Libmanan, Camarines Sur. Data were gathered using a structured survey questionnaire and analyzed using weighted mean, standard deviation, coefficient of variation, and ranking.

The findings revealed that Local Revenue Code implementation was generally perceived as effective in terms of tax enforcement mechanisms, administrative practices, and institutional capacity. Respondents positively perceived organized administrative systems, responsive personnel, enforcement procedures, and digital governance practices. However, implementation challenges related to procedural complexity, communication accessibility, processing delays, inconsistent enforcement, and limited taxpayer assistance were also identified. Best practices included streamlined processing procedures, inter-office coordination, Business One-Stop Shop (BOSS) operations, and the use of the Enhanced Tax Revenue Assessment and Collection System (ETRACS). The study concluded that effective Local Revenue Code implementation requires responsive governance systems, efficient administrative practices, institutional coordination, and strengthened digital governance mechanisms to improve taxpayer accessibility, compliance, and local revenue administration.