FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
8 JUN 30 fJ1 2 4  
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
Under the present system, it usually takes a long time before a local government 
unit (LGU) receives its portion of the proceeds of the excise taxes, which has to be 
disbursed from the national government coffers. Due to this, LGUs have a difficult time 
financing their developmental projects that purport to advance the local economy. 
This bill seeks to provide a remedy by mandating the corporations or any group, 
private or public, engaging in the utilization and development of the national wealth 
within the area, to directly remit to the concerned LGU its forty percent (40%) share 
from the national wealth taxes. Under this proposed system, the proceeds due to the 
LGUs shall no longer pass through the Department of Budget and Management, which 
is usually the cause of delay. 
Through this measure, LGUs will be able to immediately act on their projects. 
This will help improve their investment climate and thereby provide an impetus to the 
growth of their economy. 
In view of the foregoing, the passage of this bill is earnestly sought. 
Senator 


FOURTEENTH CONGRESS OF THE ) 
8 
JUN 30 P I  2 4  
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
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f3’r : 
S E N A T E  
S.B. N o . ’ a 2  1 
Introduced by Senator Loren Legarda 
AN ACT 
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL 
GOVERNMENT UNIT OF IT§ FORTY PERCENT (40%) SHARE OF THE GROSS 
COLLECTION 
DERIVED 
BY 
THE 
NATIONAL 
GOVERNMENT FROM 
NATIONAL WEALTH TAXES, AMENDING FOR THE PURPOSE SECTION 293 OF 
REPUBLIC 
ACT 
iV0. 
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 
assern bled: 
SECTION I. - Section 293 of Republic Act No. 7160, otherwise known as the 
Local Government Code of 1991, is hereby amended to read as follows: 
”SECTION 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, AS THE CASE MAY BE, 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 PERCENT (60%) TO THE 
NATIONAL GOVERNMENT [within five (5) days after the end of each 
quarter].” 
SECTION 2. Repealing Clause. - All laws, decrees, executive orders, letters of 
instructions, rules and regulations or parts thereof which are inconsistent with this Act 
are hereby repealed, amended or modified accordingly. 
SECTION 3. Effectivity. - This Act shall take effect fifteen days following the 
completion of its publication in the Official Gazette or in a newspaper of general 
circulation in the Philippines. 
Approved, 
1