1 3'h Congress of the Republic ) 
of the Philippines 
) 
2nd Regular Session 
) 
6 I%%-1 
P309 
Introduced by Senator Aquilino Q. Pimentel, Jr. 
EXPLANATORY NOTE 
Consistent with the promotion and enhancement of local financial 
autonomy, this bill seeks to amend Section 290 and 291 of Republic Act 7160, 
otherwise known as the Local Government Code. 
As proposed, the share of the local government units is increased to sixty 
percent (60%) of the gross collection derived by the national government in the 
preceding fiscal year from mining taxes, royalties, forestry and fishery charges, 
and such other taxes, fees, or charges, including related surcharges, interests, or 
fines, and from its share in any co-production, joint venture or production sharing 
agreement in the utilization and development of the national wealth within their 
territorial jurisdiction. 
Under this legislative proposal, the share of the local governments units 
from the use of national wealth, and from any government agency or -owned and 
-controlled corporation shall be remitted to them within ten (IO) 'days after the 
end of every quarter during the current fiscal year. 
resource generation. Hence, the approval of this bill is earnestly requested. 
This is just one of the measures that seeks to broaden the local fiscal 
/I 
6 
A 
ILINO Q. PIMENTEL, 
p"--v 
JR. 


13‘h Congress of the Republic ) 
of the Philippines 
) 
2nd Regular Session 
) 
-&: 
SENAT2 2 1.8 , 
1 .  
SB- 
.IBouvED?.wFy; 
Introduced by Senator Aquilino Q. Pimentel, Jr. 
AN ACT AMENDING SECTION 290 AND 291 OF REPUBLIC ACT 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Be if enacfed by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
as follows: 
SECTION 1. Section 290 of RA 7160 is hereby amended and shall read 
Section 290. Amount of Share of Local Government Units. - Local 
government units shall, in addition to the internal revenue allotment, have 
a share of (forty percent (40%)) SIXTY PERCENT (60%) of the gross 
collection derived by the national government [from] IN the preceding 
fiscal year from mining taxes, royalties, forestry and fishery charges, and 
such other taxes, fees, or charges, including related surcharges, interests, 
or fines, and from its share in any co-production, joint venture or 
production sharing agreement in the utilization and development of the 
national wealth within their territorial jurisdiction. PROVIDED, THAT THE 
SHARES OF THE LOCAL GOVERNMENT UNITS CONCERNED SHALL 
BE REMITTED TO THEM WITHIN TEN (IO) DAYS AFTER THE END OF 
EVERY QUARTER DURING THE CURRENT FISCAL YEAR; 
THERE 
SHALL 
BE 
A 
COMMITTEE 
COMPOSED 
OF 
THE 
REPRESENTATIVES OF THE TAX PAYERS, THE DEPARTMENT OF 
FINANCE, THE DEPARTMENT OF BUDGET AND MANAGEMENT, AND 
THE LOCAL GOVERNMENT UNIT CONCERNED TASKED TO 
FORMULATE THE NECESSARY PROCEDURE FOR THE EFFECTIVE 
IMPLEMENTATION OF THIS PROVISION, AND WHICH SHALL SUBMIT 
ITS REPORT TO THE COMMITTEE ON LOCAL GOVERNMENT OF 
BOTH HOUSES OF CONGRESS. 
SECTION 2. Section 291 of RA 7160 is hereby amended and shall read 
as follows: 
Section 291. Share of the Local Governments from any 
Government Agency or -Owned and -Controlled Corporation. - Local 
government units shall have a share based on the preceding fiscal year 
from the proceeds derived by any government agency or government- 
owned or -controlled corporation engaged in the utilization and 
development of the national wealth based on the following formula 
whichever will produce a higher share for the local government unit: 
a. One percent (1%) of the gross sales or receipts of the preceding 
calendar year; or 
b. Forty percent (40%) of the mining taxes, royalties, forestry and 
fishery charges and such other taxes, fees or charges, including 
related surcharges, interests, or fines the government agency or 
government -owned or -controlled corporation would have paid if it 
were not otherwise exempt. 


PROVIDED THAT, THE SHARES OF THE LOCAL GOVERNMENT 
UNITS CONCERNED SHALL BE REMITTED TO THEM. WITHIN TEN 
( I O )  DAYS AFTER THE END OF EVERY QUARTER DURING THE 
CURRENT FISCAL YEAR. 
THERE SHALL BE A COMMITTEE CREATED IN THE LOCAL 
GOVERNMENT 
UNIT 
CONCERNED 
COMPOSED 
OF 
THE 
REPRESENTATIVES OF THE TAX PAYERS, THE DEPARTMENT OF 
FINANCE, DEPARTMENT OF BUDGET AND MANAGEMENT, AND THE 
LOCAL GOVERNMENT UNIT CONCERNED TASKED TO FORMULATE 
THE 
NECESSARY 
PROCEDURE 
FOR 
THE 
EFFECTIVE 
IMPLEMENTATION OF THIS PROVISION, AND WHICH SHALL SUBMIT 
ITS REPORT TO THE COMMITTEE ON LOCAL GOVERNMENT OF 
BOTH HOUSES OF CONGRESS. 
SECTION 3. All laws, decrees, executive orders, proclamations, rules and 
regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
SECTION 4. Separability Clause. - If any provision of this Act is held invalid or 
unconstitutional, the other provisions not affected hereby shall remain valid and 
subsisting. 
SECTION 5. This Act shall take effect fifteen (15) days after its publication in at 
least two (2) national newspapers of general circulation. 
Approved,