Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
First Regular Session

vouse pitino. 1494

Introduced by: REP. MEL SENEN S. SARMIENTO

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 from forty percent
(40%) to forty five percent (45%) 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 directly to them within ten (10) days after the end of every quarter during
the current fiscal year.

This is just one of the measures that seek to broaden the local fiscal resource
generation, Hence, the approval of this bill is eamestly requested.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1491

Introduced by: REP. MEL SENEN S. SARMIENTO.

AN ACT
AMENDING SECTION 290 AND 291 OF REPUBLIC ACT 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:

1 SECTION 1. Section 290 of RA 7160 is hereby amended and shall read as follows:

3 Section 290. Amount of Share of Local Government Units. - Local government
4 units shall, in addition to the internal revenue allotment, have a share of (forty percent
5 (40%)) FORTY FIVE PERCENT (45%) of the gross collection derived by the
6 national government [from] IN the preceding fiscal year from mining taxes, royalties,
7 forestry and fishery charges, and such other taxes, fees, or charges, including related
8 surcharges, interests, or fines, and from its share in any co-production, joint venture or
9 production sharing agreement in the utilization and development of the national

10 wealth within their territorial jurisdiction. PROVIDED, THAT THE SHARES OF

1 THE LOCAL GOVERNMENT UNITS CONCERNED SHALL BE REMITTED TO

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THEM DIRECTLY WITHIN TEN (10) 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 Five percent (45%) 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.

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PROVIDED THAT, THE SHARES OF THE LOCAL GOVERNMENT UNITS
CONCERNED SHALL BE REMITTED TO THEM DIRECTLY WITHIN TEN (10)
DAYS AFTER THE END OF EVERY QUARTER DURING THE CURRENT
FISCAL YEAR.

THE COMMITTEE CREATED HEREIN SHALL IMPLEMENT THE

PROVISIONS OF THIS ACT.
SECTION 3. Repealing Clause. ~ 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. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) national newspapers of general circulation.

Approved,

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