Republic of the Philippines 29 JUL 2013
House oF REPRESENTATIVES acai
Quezon City, Meteo Manila ,

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO, 2005

Introduced By:
REP. FRANCISCO T. MATUGAS, 1°" District, Surigao del Norte (Siargao Island)
REP. GUILLERMO A. ROMARATE, JR., 2% District, Surigao del Norte
REP. PHILIP A. PICHAY, 15! District, Surigao del Sur
REP. FLORENCIO C. GARAY, 2 District, Surigao del Sur

EXPLANATORY NOTE

This bill, which was approved by the House of Representatives of
the 15!" Congress and refiled in toto in the present Congress, seeks to
provide for the automatic retention by the host local government unit
of its forty percent (40%) share of the gross collection derived by the
national government from the national wealth taxes. The automatic
retention applies to such taxes actually collected by each local
government unit and shall be distributed in accordance with the
allocation of shares as provided for under Section 292 of the Local
Government Code of 1991. The allocation of shares shall be made
and distributed by the host local government unit that actually
collected such taxes.

Section 6, Article X of the 1987 Philippine Constitution provides
that:

“Local government units shall have a just share, as
determined by law, in the national taxes which shall be
automatically released to them.”

This measure will allow the host local government units to directly
receive its just share from the national wealth taxes, thereby helping
our local executives in their operational expenses in delivering basic
services to their constituents.

Moreover, this bill will also resolve the present bureaucratic
intricacies where funds are first remitted to the national government
before they are apportioned to the local government units. Here, local
legislative bodies will benefit from automatic retention of their
respective shares so they could immediately appropriate funds to their
priority development projects.


Our local executives are the first to respond to the needs of their
people, it is but logical that they are empowered to serve their citizens
well. This is just one of the measures that seek to broaden the local
fiscal resource generation of the local government units. Hence,
immediate approval of this bill is eamestly sought.

FRANCISCO T. MATUGAS

Yoo oa



orttey,

|, NOUSe,
* sano"

Pipes?
Republic of the Philippines

Bouse OF REPRESENTATIVES
Queson City, Hetro Manila

Sixteenth Congress
First Regular Session

HOUSE BILL NO. _ 2005

Introduced By:
REP. FRANCISCO T. MATUGAS, 1°" District, Surigao del Norte (Siargao Island)
REP. GUILLERMO A. ROMARATE, JR., 2° District, Surigao del Norte
REP. PHILIP A. PICHAY, 1°" District, Surigao del Sur
REP. FLORENCIO C. GARAY, 2° District, Surigao del Sur

AN ACT

PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL GOVERNMENT OF ITS
FORTY PERCENT (40%) SHARE OF THE PROCEEDS DERIVED FROM THE UTILIZATION
AND DEVELOPMENT OF NATIONAL WEALTH, AMENDING FOR THE PURPOSE SECTION
293 OF REPUBLIC ACT NO. 7160, AS AMENDED, 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:

SECTION 1. Section 293 of Republic Act No. 7160, as amended, otherwise
known as the “Local Government Code of 1991", is hereby further amended to
read as follows:

SEC. 293. Remittance of the Share of Local Government
Units - The share of local government units from the utilization and
development of national wealth shall be remitted in accordance
with Section 286 of this Code: Provided, however, That ANY PERSON,

NATURAL OR JURIDICAL, INCLUDING [in the case of any] government

agency or government-owned or controlled corporation engaged


in the utilization and development of the national wealth [such
share] shall [be] directly remit[ted] to the provincial, city, municipal
or barangay treasurer OF THE HOST LOCAL GOVERNMENT UNIT
concerned ITS FORTY PERCENT (40%) SHARE DERIVED FROM
NATIONAL WEALTH TAXES UNDER SECTION 290 OF THIS CODE AND
THE REMAINING SIXTY (60%) TO THE NATIONAL GOVERNMENT [within
five (5) days after the end of each quarter].”

Sec. 2. All laws, decrees, orders, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby amended or modified
accordingly.

Sec. 3, This Act shalll take effect fifteen (15) days after its publication in the
Official Gazette or in two (2) national newspapers of general circulation.

Approved,