FOURTEENTH CONGRESS OF THE 
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First Regular Session 
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REPUBLIC OF THE PHILIPPINES 
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s. B. NO. 908 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The barangays, as institutionalized in the Local Government Code of 
1991, is the basic unit of our political structure. Like municipalities, cities 
and provinces, barangays are mandated to perform certain duties and 
functions. It is also mandated to be self-reliant, which requires that it must 
raise its own revenue .so that it can efficiently and effectively provide and 
delivers the basic services and facilities to its inhabitants. 
Although the Local Government Code has generous provisions 
identifying the sources of revenue for the barangays, some of these, however, 
are vague as to when the barangays shall enjoy the same. 
Specifically, Section 164 provides that barangays are entitled to a 
share of up to fifty percent (50%) of its community tax collection. However, 
while the said proviso provides that the share of the national government 
from the community tax collection shall remitted by the city or municipality 
concerned within ten (10) days after the end of each quarter, it is silent as to 
when the barangay shall receive its share. 
In practice, the city or municipality concerned releases to the barangay 
its share only when the latter asks for it. Lamentably, in most cases, the 
release takes a long time, thereby causing delays in the rendition of basic 
services to the constituents. Meanwhile, the city or municipality deposits the 
share of the barangay with its depository bank under a time deposit account 
and enjoy the interest accruing thereto. 
This bill, therefore, seeks to correct the situation. 
It is proposed that Section 164 (c) (2) be amended to the effect that the 
barangay treasurer concerned shall automatically retain the fifty percent 
(50%) share of barangays in the community tax collected and remit the share 
of the city or municality within ten (10) days after the end of each month. 
Approval of this bill, therefore, is earnestly sought. 
EDGARD J. ANGARA 
Senator 


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FOURTEENTH CONGRESS OF THE 
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7 
?Jl]l. -3 
i3 6 2 3  
REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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n\;CE}VED BY : -- 
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S E N A T E  
s . B . N ~ .  908 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT PROVIDING FOR THE AUTOMATIC RETENTION 
BY THE BARANGAY OF ITS FIFTY PERCENT (50%) SHARE IN THE 
COMMUNITY TAX COLLECTED BY SAID BARANGAY, 
AMENDING SECTION 164 OF THE 
LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled 
SECTION 1. Section 164 of Republic Act No. 7160, otherwise known 
as the Local Government Code of 1991 is hereby amended tread as follows: 
“SEC. 164. Printing of Community Tax Certificate 
and Distribution of Proceeds - (a) The Bureau of 
Internal Revenue shall cause the printing of community 
tax certificate and distribute the same to the cities and 
municipalities through the city and municipal treasurers 
in accordance with prescribed regulations. 
The proceeds of the tax shall accrue to the general funds 
of the cities, municipalities and barangays except a 
portion thereof which shall accrue to the general fund of 


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the National Government to cover the actual cost of 
printing and distribution of the forms and other related 
expenses The city or municipality treasurer the said share 
of the National Government in the proceeds of the tax 
within ten (10) days after the end of each quarter. 
The city or municipality treasurer shall deputize the 
barangay treasurer to collect the community tax in their 
respective jurisdictions: 
Provided, however, that said 
barangay treasurer shall be bonded in accordance with 
existing laws. 
The proceeds of the community tax actually and directly 
collected by the city or municipal treasurer shall accrue 
entirely to the general fund of the city or municipality 
concerned. However, proceeds of the community tax 
collected through the barangay treasurers shall be 
apportioned as follows: 
Fifty percent (50%) shall accrue to the general fund 
of the city or municipality concerned; and 
Fifty percent (50%) shall accrue to the barangay 
[where tax is collected] WHICH COLLECTED TAX. 
THE BARANGAY TREASURER CONCERNED SHALL 
AUTOMATICALLY RETAIN THE SHARE OF THE 
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BARANGAY AND REMIT THE SHARE OF THE CITY 
OR MUNICIPALITY, CONCERNED WITHIN TEN (10) 
DAYS AFTER THE END OF THE MONTH. 
SECTION. 2. Repealing Clause. All laws, executive orders, rules 
and regulations contrary to the provisions of this Act are hereby repealed or 
modified accordingly. 
SECTION. 3. Separability Clause. If any provision of this Act is 
declared unconstitutional or invalid, the other provisions not affected shall 
remain in full force and effect. 
SECTION. 4. 
Effectivity Clause. This Act shall take effect 
immediately following its publication in the Official Gazette or in two (2) 
newspapers of general circulation, whichever come first. 
Approved, 
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