FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2039 
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 stmcture. 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 sha11 enjoy the same. 
Specifically, Section 164 provides that barangays are entit1ed 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 longtime, 
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 accming 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 conl,crned shall automatically retain the fifty percent (50%) share of barangays 
in the community tax collected and remit the share of the city or municipality within ten 
(10) days after the end of eaoh month. 
Approval of this bill, therefore, is earnestly sought. 
)'A / /~ 
rnifARnO J. ANGARA 
Senator 


~:;; 
FIFTEENTH CONGRESS OF THE 
) 
k 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill N~. 2039 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
PROVIDING FOR THE AUTOMATIC RETENTION BY THE BARANGAYOF 
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 the House of Representatives in Congress 
assembled: 
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SECTION 1. Section 164 ofRepublic Act No. 7160, otherwise known as 
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the Local Government Code of 1991 is hereby amended tread as follows: 
i: 
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"SEC. 164. Printing of Community Tax Certificate and 
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DistributiOit of Proceetis - (a) The Bureau of Internal Revenue 
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shall cause the printing of community tax certificate and distribute 
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the same to the cities and municipalities through the city and 
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municipal treasurers in accordance with prescribed regulations. 
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The proceeds of the tax shall accrue to the general funds of 
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the cities, municipalities and barangays except a portion thereof 
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which shall accrue to the general fund of the National Government 
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to cover the actual cost of printing and distribution of the forms 
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and other related expenses The city or municipality treasurer the 
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said share of the National Government in the proceeds of the tax 
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within ten (10) days after the end of each quarter. 
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The city or municipality treasurer shall deputize the barangay 
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treasurer to collect the community tax in their respective 
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jurisdictions: Provided, however, that said barangay treasurer shall 
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be bonded in accordance with existing laws. 
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The proceeds of the community tax actually and directly 
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collected by the city or municipal treasurer shall accrue entirely to 
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the general fund of the city or municipality concerned. However, 
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proceeds of the community tax collected through the barangay 
treasurers shall be apportioned as follows: 
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Fifty percent (50%) shall accrue to the general fund of the 
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city or municipality concerned; and 
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Fifty percent (50%) shall accrue to the barangay [where tax 
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is collected] WHICH COLLECTED TAX. 
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THE 
BARANGAY 
TREASURER 
CONCERNED 
SHALL 
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AUTOMATICALLY 
RETAIN 
THE 
SHARE 
OF 
THE 
BARANGAY AND REMIT THE SHARE OF THE CITY OR 
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MUNICIPALITY, CONCERNED WITHIN TEN (10) DAYS 
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AFTER THE END OF THE MONTH. 
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SEC. 2. Repealing Clause. All laws, executive orders, rules and regulations 
contrary to the provisions of this Act are hereby repealed or modified accordingly. 
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SEC. 3. Separability Clause. If any provision of this Act is declared 
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unconstitutional or invalid, the other provisions not affected shall remain in full force and 
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effect. 
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SEC. 4. Effectivity Clause. This Act shall take effect immediately following its 
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publication in the Official Gazette or in two (2) newspapers of general circulation, 
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whichever come first 
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Approved, 
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3