E IG H T E E N T H  C O N G R E S S  O F  T H E  
R E P U B L IC  O F  T H E  P H IL IP P IN E S
First Regular Session
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S E N A T E  
S. No.
BY:
S7
BILLS 
INDEX
In tro d u c e d  b y  S e n a to r A q u ilin o  “ K o k o ” P im e n te l H I
A N  A C T  P R O V ID IN G  F O R  T H E  S H A R E  IN  T H E  N A T IO N A L  
T A X E S  O F  L O C A L  G O V  E R N M E N T  U N IT S , A M E N D IN G  F O R  
T H IS  P U R P O S E  R E P U B L IC  A C T  
N O . 7 1 6 0 , O T H E R W IS E  K N O W N  A S T H E  L O C A L  
G O V E R N M E N T  C O D E  O F  1991
E X P L A N A T O R Y  N O T E
A rticle X , S ectio n  6 o f  the 1987 C o n stitu tio n  p ro v id es th at “ L ocal 
g o v ern m en t un its shall h av e a ju s t share, as d eterm in ed  by law , in the 
natio n al tax es w h ich  shall be au to m atically  released  to th em .”
S ectio n  284, T itle III, C h a p te r I o f  the L ocal G o v ern m en t C o d e o f 
1991 d eclares th at the local g o v ern m en t u n its (L G U s) shall h av e a share 
in th e “ n atio n al internal rev en u e ta x e s.”
T h is b ill, w h ich  1 refer to as the “ B ig g er Pie, B igger S lice” Bill 
ex p an d s the so urce o f  fu n d s for L G U s by ch an g in g  “ n ational internal 
rev en u e tax e s” to “ n atio n al ta x e s” , w h ich  is still, if  n o t m ore, co m p lian t 
w ith the ab o v e co n stitu tio n al m andate.
A s fro n tlin ers in the d eliv ery  o f  g o v ern m en t services, L G U s h ave 
b een  g iv en  n u m ero u s m an d ates but, m ost o f  th e tim e, the reso u rces to 
fu lfill th ese m an d ates h av e b een  o v erlo o k ed  and have not been co m in g  to 
the L G U s.


T h is bill seek s to g iv e L G U s m ore reso u rces to m ak e them  fulfill 
th eir ro le as fro n tlin ers to th eir resp ectiv e co n stitu en ts.
T h is bill ach iev es th is by in clu d in g  in the “ p ie” 
^he co llectio n s o f 
th e B u reau  o f  C u sto m s.
N o t o n ly  d o es this bill seek to in crease the so u rce o f  funds given to 
L G U s u n d er the ab o v e-q u o ted  co n stitu tio n al m andate, b u t it also 
in creases the sh are of, o r slice fo r L G U s in the b ig g er pie, from  the p resen t 
4 0 %  to the p ro p o sed  50 %  share.
A sid e from  g iv in g  m o re reso u rces to L G U s, an o th er co llateral resu lt 
o f  th is bill is th at it co n v erts the fight ag ain st sm u g g lin g  into a g rassro o t 
co n cern  b ecau se the L G U s w ill now  be m ore sen sitiv e that m atters 
co n cern in g  sm u g g lin g  succeed. T he B O C s co llectio n  w ill increase and 
w h ich , in tu rn , w ill also increase the L G U s’ share in th e n atio n al taxes.
I 
fo resee faster d e v elo p m en t and p ro g ress in th e co u n try sid e w ith 
the en actm en t o f  th is b ill, as b aran g ay s are also b en eficiaries o f  this bill.
H en ce, it is req u ested  th at this m easu re b e en acted as soon as 
p o ssib le for th e b en efit o f  all.
A Q U IL IN O  “ K O K O ” P IM E N T E L  111


€
E IG H T E E N T H  C O N G R E S S  O F  T H E  
) 
R E P U B L IC  O F  T H E  P H IL IP P IN E S  
)
First Regular Session 
)
S E N A T E  
S. No.
S7
TIME:
BILLS & II
In tro d u c e d  by S e n a to r A q u ilin o  “ K o k o ” P im e n te l H I
A N  A C T  P R O V ID IN G  F O R  T H E  S H A R E  IN  T H E  N A T IO N A L  
T A X E S  O F  L O C A L  G O V E R N M E N T  U N IT S , A M E N D IN G  
F O R  T H IS  P U R P O S E  R E P U B L IC  A C T  N O . 7 1 6 0 , 
O T H E R W IS E  K N O W N  A S T H E  L O C A L  
G O V E R N M E N T  C O D E  O F  1991
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled:
1 
S E C T IO N  1. Increased Share of LGUs in the National Taxes. -
2 
B eg in n in g  the fiscal y ear fo llo w in g  th e effectiv ity  o f  this A ct, local
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g o v ern m en t units shall h av e a titty  p ercen t (50% ) share in the national
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tax es (“ S N T ” ) b ased  on the co llectio n  o f  the th ird  fiscal y ear p reced in g
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the cu rren t fiscal year; Provided, That in the ev en t th at the national
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g o v ern m en t in cu rs an u n m an ag eab le p u b lic secto r deficit, the P resid en t
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o f  the P h ilip p in es is h ereb y  au th o rized , upon the reco m m en d atio n  o f
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S ecretary  o f  F in an ce, S ecretary  o f  the In terio r and L ocal G o v ern m en t, and
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S ecretary  o f  B u d g et and M an ag em en t, and su b ject to co n su ltatio n  w ith
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th e p resid in g  o fficers o f  both H o u ses o f  C o n g ress and the p resid en ts o f
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the v ario u s leag u es o f  the local g o v ern m en t units, to m ake n ecessary
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ad ju stm en ts in the sh are in the national tax es o f  local g o v ern m en t units
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b u t in no case shall the sh are b e less than forty p ercen t (4 0 % ) o f  the
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co llectio n  o f  natio n al taxes o f  the third fiscal y ear p reced in g  the cu rren t
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fiscal year.


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S E C . 2. Allocation ofLGUShares. -  T h e sh are in th e n ational taxes 
created  u n d e r th is A ct o f  each local g o v ern m en t until shall be determ in ed  
fo llo w in g  the fo rm u la p rescrib ed  u n d er S ection 285 o f R ep u b lic A ct N o. 
7160.
S E C . 
3. Funding for Development Projects. 
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E ach 
local 
g o v ern m en t u n it shall ap p ro p riate in its annual b u d g et no less than tw enty 
p ercen t (2 0 % ) o f  its sh are in the n ational tax es for d ev elo p m en t projects. 
C o p ies o f  the d ev elo p m en t p lan s o f  local g o v ern m en t units shall be 
fu rn ish ed  th e D ep artm en t o f  In terio r and L ocal G o v ernm ent.
S E C . 4. Rules and Regulations. -  T h e S ecretary  o f  F in an ce, in 
c o n su ltatio n  w ith th e S ecretary  o f  B u d g et and M an ag em en t, shall 
p ro m u lg ate w ith in  n in ety  (90) days from  ap proval o f  this A ct, the 
n ecessary  ru les and reg u latio n s for a sim p lified  d isb u rsem en t schem e 
d esig n ed  fo r th e sp eed y  and effectiv e en fo rcem en t o f  the p ro v isio n s o f 
this A ct.
S E C . 5. Separability Clause. -  I f  any p ro v isio n  o f this A ct is 
d eclared  in v alid  o r u n co n stitu tio n al, th e o th er p ro v isio n s not affected by 
such d eclaratio n  shall rem ain  in full force and effect.
S E C . 6. Repealing Clause. - S ection 284 u n d er C h ap ter I, T itle III 
o f  R ep u b lic A ct N o. 7160, and all law s, ex ecu tiv e and ad m in istrativ e 
orders, ru les and reg u latio n s in co n sisten t w ith  the fo reg o in g  p ro v isio n s 
are h ereb y  rep ealed  o r m o d ified  accordingly.
S E C .7 . Effectivity. -  T h is A ct shall take effect fifteen (15) days after 
its p u b licatio n  in the O fficial G azette o r in a n e w sp a p er o f  general 
circu latio n .
Approved,