FIFTEENTH' CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
SENATE 
S.BILLNO. 2132 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
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At present, local government unit~ (LOUs) 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, there are instances when the national 
government has not fully remitted to the local government units their corresponding share in the 
national taxes. 
This 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 coproduction, 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. 
This bill ensures that the host LGU immediately gets its full share in any co-production, 
joint venture or production sharing agreement in the utilization and development of the national 
wealth within their territorial jurisdiction, by mandating that the forty percent (40%) share 
pertaining to the host LGU be paid directly to it. On the other hand, the sixty percent (60%) share 
of the national government shall be paid to the national government. 
In vie\\, of the foregoing, the inmlediate approval of this measure is hereby requested. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. BILL NO. 2132 
,." .. 
Introduced by Senator Ralph G. Recto 
AN ACT 
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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: 
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SECTION 1. Section 290 of Republic Act No. 7160, othef\vise knO\",n as the "Local 
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Government Code of 1991" is hereby amended to read as follows: 
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"SEC. 290. Amount of Share of Local Government Units. - Local government 
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units shall, in addition to the internal revenue allotment, have a share of forty percent 
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(40%) of the gross collection derived by the national government from the preceding 
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fiscal year from mining taxes, royalties, forestry and fishery charges, and such other 
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taxes, fees, or charges, including related surcharges, interests, or fines, and from its share 
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in any co-production, joint venture or production sharing agreement in the utilization and 
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development of the national wealth within their teITitorial jurisdiction [.]: PROVIDED, 
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THAT 
PERSONS, 
NATURAL 
OR 
JURIDICAL, 
ENGAGED 
IN 
THE 
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UTILIZATION AND DEVELOPMENT OF THE NATIONAL WEALTH, SHALL 
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PAY DIRECTLY THE ABOVEMENTIONED FORTY PERCENT (40%) OF 
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THEIR NATIONAL WEALTH TAXES TO THE HOST LOCAL GOVERNMENT 
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UNITS AND THE REMAINING SIXTY PERCENT (60%) TO THE NATIONAL 
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GOVERNMENT. 
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SEC. 2. All laws, executive orders, decrees, rules and regulations or parts thereof which 
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are inconsistent with any of the provisions of this Act are hereby repealed or modified 
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accordingly. 
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SEC. 3. This Act shall take effect fifteen days (15) days following its publication in at 
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least two (2) newspapers of general circulation or the Official Gazette. 
Approved,