EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
p{ liji:
SENATE
S. B. NO. 
607
*19 
JUL18 PI :24
RECEi'/ U . i
Introduced by SENATOR JOEL VILLANUEVA
AN ACT PROMOTING LOCAL GOVERNMENT 
EMPOWERMENT IN ORDER TO ACHIEVE INCLUSIVE 
DEVELOPMENT, AMENDING FOR THE PURPOSE SECTION 
284 OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991
EXPLANATORY NOTE
Republic Act No. 7160 or the Local Government Code of 1991 (LGC) 
sought to empower Local Government Units (LGUs) by giving them the 
authority to effectively formulate and implement their respective projects and 
programs by, among others, giving them a just share in the national taxes and 
empowering them to create their own sources of revenue.
The share of the LGUs in national taxes is realized through the 
automatic and release of Internal Revenue Allotments (IRA) to each LGU. The 
IRA from the National Government enables the LGUs to fund their respective 
programs consistent with the national objective of effectively carrying out 
devolved functions.
Aside from their right to a share just in national taxes, LGUs are also 
empowered under the LGC to create and broaden their own sources of 
revenue, by giving them, for example, the power to tax the transfer of real 
property ownership. However, many LGUs continue to suffer from limited 
fiscal resources, and thus, fail to adequately provide services and programs to 
their constituents. To date, many LGUs continue to rely on direct provision 
from the national government especially for programs and projects that 
contribute to local development.


To address the issue of scarce resources faced by many LGUs, this bill 
seeks to provide additional funding to LGUs by amending Section 248 of the 
LGC by increasing their share in the national taxes from forty percent (40%) to 
fifty percent (50%).
The immediate passage of this bill is earnestly sought.
SENATOR^OEL VILLANUEVA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
L-s' *®0irr of il!c ®>r i rMrp
• A - '
SENATE
S. B. NO. B07
’19 JUL18 PI 24
R k U . . , . ' L .
Introduced by SENATOR JOEL VILLANUEVA
AN ACT PROMOTING LOCAL GOVERNMENT EMPOWERMENT IN 
ORDER TO ACHIEVE INCLUSIVE DEVELOPMENT, AMENDING FOR 
THE PURPOSE SECTION 284 OF REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF
1991
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Section 284 of Republic Act No. 7160, otherwise known as the
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“Local Government Code of 1991" is hereby amended to read as follows:
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“SEC. 284. Allotment of Internal Revenue Taxes. -
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Local government units shall have a share in the national [internal
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revenue] taxes based on the collection of the third fiscal year preceding
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the current fiscal year as follows:
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a) On the first year of the effectivity of this Code, thirty percent
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(30%);
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b) On the second year, thirty-five percent (35%); and
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c) On the third year and thereafter, FIFTY PERCENT (50%) [forty
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percent (40%).]
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XXX
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SEC. 2. Implementing Rules and Regulations. -  Within sixty (60) days from
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the effectivity of this Act, the Secretary of Finance and the Secretary of
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Budget and Management, in consultation with the Leagues of Provinces,
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Cities and Municipalities, Liga ng mga Barangay and other relevant
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stakeholders, shall promulgate the necessary rules and regulations for the
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effective implementation of this Act.


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SEC. 3. Separability Clause. -  If any provision of this Act or the application
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such provision to any person or circumstances is declared unconstitutional,
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the remainder of the Act or the application of such provision to other person or
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circumstances shall not be affected by such declaration.
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SEC. 4. Repealing Clause. -  Any law, presidential decree or issuance,
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executive order, letter of instruction, administrative order, rule or regulation of
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the contrary to or inconsistent with any provision of this Act is hereby repealed
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or modified accordingly.
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SEC. 5. Effectivity. -  This Act shall take effect fifteen (15) days from the
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date of its publication in the Official Gazette or in at least two (2) newspapers
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of general circulation.
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Approved,