FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SEN~Tg96 
S.B.No. __ _ 
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OCT 12 (' 5 :24 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
The Constitution, Article II, Section 25 states: "The State shall ensure the 
autonomy of local governments." Further, Article X, Section 6 mandates: "Local 
government units shall have a just share, as determined by law, in the national taxes 
which shall be automatically released to them." 
The Internal revenue Allotment (IRA) of local governments has been the lifeblood 
of many of the local government units (LGUs) as far as operations at the local level is 
concerned. This proposed measure seeks to enhance and effectively increase the 
share of the local governments in the national taxes so as to support the needs of the 
LGUs. 
This bill seeks to amend Sections 284, 286, 290 and 291 of the Local 
Government Code of 1991 by increasing to fifty percent (50%) the share of local 
government units (LGUs) in the national taxes and to release to each local government 
unit, specifically directly to the provincial, city, municipal or barangay treasurer, as the 
case may be, the said increase without need of any further action, on a monthly or 
quarterly basis within five (5) days after the end of each month or quarter. This share 
shall not be subject to any lien or holdback that may be imposed by the national 
government. 
The proposed 50% 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 to the LGUs within ten (10) days after the end of every quarter during the 
current fiscal year. 
Certainly, increasing the local governments' share to national taxes will certainly 
augment their needed income to support the growing demands of local development. 
This measure is consistent with the promotion and enhancement of local 
financial autonomy of LGUs in order that they can enjoy genuine and meaningful local 
autonomy to enable them to attain their fullest development as self-reliant communities 
In view of the foregoing reasons, the approval of this bill is earnestly sought. 
RA O~EVILLA, JR. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENtl996 
S.B.No. __ 
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'11 
OCT 12 P5:24 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT AMENDING SECTIONS 284, 286, 290 AND 291 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 1. Section 284 of RA 7160 is hereby amended and shall read as follows: 
Section 
284. 
[Allotment] 
SHARE 
of 
[Internal 
Revenue] NATIONAL taxes. UPON APPROVAL OF THIS 
CODE, AS AMENDED, [L] local government units [shall 
have a] ARE ENTITLED TO A FIFTY PERCENT (50%) 
share [in the] OF national [internal revenue] taxes based on 
the collection of the third fiscal year preceding the current 
fiscal year. [as follows:] 
[(a) On the first year of the effectivity of this Code, thirty 
percent (30%); 
(b) On the second year, thirty-five percent (35%); and 
(c) On the third year and thereafter, forty percent (40%). 
Provided, That in the event that the national government 
incurs an unmanageable public sector deficit, the President 
of the 
Philippines 
is 
hereby 
authorized, 
upon 
the 
recommendation of Secretary of Finance, Secretary of 
Interior and Local Government and Secretary of Budget and 
Management, and subject to consultation with the presiding 
officers of both Houses of Congress and the presidents of 
the liga, to make the necessary adjustments in the internal 
revenue allotment of local government units but in no case 
shall the allotment be less than thirty percent (30%) of the 
collection of national internal revenue taxes of the third fiscal 
year preceding the current fiscal year: PrOvided, further That 
in the first year of the effectivity of this Code, the local 
government units shall, in addition to the thirty percent (30%) 
internal revenue allotment which shall include the cost of 
devolved functions for essential public services, be entitled 
to receive the amount equivalent to the cost of devolved 
personal services.] 
SECTION 2. Section 286 of RA 7160 is hereby amended and shall read as follows: 


Section 286. Automatic Release of Shares. - (a) The 
share of each local government unit IS CONSIDERED 
OBLIGATED AND IT shall be released, without need of any 
further action, directly to the provincial, city, municipal or 
barangay treasurer, as the case may be, on a MONTHLY 
OR quarterly baSis within five (5) days after the end of each 
MONTH OR quarter, [and which] 
(B) SAID SHARE shall not be subject to any lien or 
holdback that may be imposed by the (national) CENTRAL 
government for whatever purpose. 
[(b)] (C) Nothing in this Chapter shall be understood to 
diminish the share of local government units under existing 
laws. 
Section 3. Section 290 of RA 7160 is hereby amended and shall read as follows: 
Section 290. Amount of Share of Local Government 
Units. - Local government units shall, in addition to the 
internal revenue allotment, have a share of [forty percent 
(40%)] FIFTY PERCENT (50%) of the gross collection 
derived by the national government [from] 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. PROVIDED, THAT 
THE SHARES OF THE LOCAL GOVERNMENT UNITS 
CONCERNED SHALL BE REMITTED 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 4. 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 percent (40%)] FIFTY PERCENT (50%) 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. 
PROVIDED THAT, THE SHARES OF THE LOCAL 
GOVERNMENT 
UNITS 
CONCERNED 
SHALL 
BE 
REMITTED TO THEM 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 5. Repealing Clause. - All laws, decrees, executive orders, proclamations, 
rules and regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
SECTION 6. 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 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved,