13TH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
'04 
JUL -6 
A11 :51 
First Regular Session 
1 
13 
S. BILL NO. 
Introduced by SENATOR RALPH G. RECTO 
Explanatory Note 
At present, local government units are entitled to 40% of the gross 
collections derived by the national government from the utilization and 
development of the national wealth by private persons or entities. Unfortunately, 
while individuals and private sectors pay their taxes to the national government 
pursuant to the existing laws, the national government has not fully remitted to 
the local government units their corresponding share in the national taxes. 
The proposal seeks to amend Section 290 of the Local Government Code 
which states that the internal revenue collections from the national wealth 
through mining, forestry, and fishery activities in the form of taxes, royalties, fees, 
charges, interests, fines, or shares of the central government in any co- 
production, joint venture or production sharing agreements over such activities 
shall be shared with the local governments having jurisdiction over areas 
dedicated to the use and development of the national wealth. 
The share 
pertaining to the host local government unit shall be paid directly to it. On the 
other hand, the share of the national government shall be paid to the national 
government. 
In view of the foregoing, the immediate approval of this measure is hereby 
requested. 


.Y 
13TH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S. BILL NO. 
’04 
JUL -6 
All 51 
Introduced bv SENATOR RALPH G. RECTO 
AN ACT 
AMENDING SECTION 290 OF REPUBLIC ACT NO. 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: 
SECTION~I. Section 290 of Republic Act No. 7160, entitled the “Local 
I 
1 
2 
Government Cod; of 1991’’ is hereby amended to read as follows: 
3 
”SEC. 290. Amount of Share of Local Government Units. - Local 
4 
government units shall, in addition to the internal revenue allotment, have a 
5 
share of forty percent (40%) of the gross collection derived by the national 
6 
government from the preceding fiscal year from mining taxes, royalties, forestry 
7 
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 
9 
venture or production sharing agreement in the utilization and development of the 
10 
national wealth within their territorial jurisdiction [.I: 
PROVIDED, THAT 
11 
PERSONS, NATURAL OR JURIDICAL, ENGAGED IN THE UTILIZATION AND 
12 
DEVELOPMENT OF THE NATIONAL WEALTH, SHALL PAY DIRECTLY THE 
13 
ABOVEMENTIONED FORTY PERCENT (40%) OF THEIR NATIONAL 
14 
WEALTH TAXES TO THE HOST LOCAL GOVERNMENT UNITS AND THE 
15 
REMAINING SIXTY PERCENT (60%) TO THE NATIONAL GOVERNMENT. 
16 
SEC. 2. 
All laws, executive orders, decrees, rules and 
17 
regulations or parts thereof which are inconsistent with any of the provisions of 
18 
this Act are hereby repealed or modified accordingly. 
19 
SEC. 3. 
This Act shall take effect upon approval. 
20 
Approved, 
I 
1