FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
House Bill No.__ 2874

Introduced by Representative Teodorico T. Haresco, Jr.

EXPLANATORY NOTE

Republic Act 7160, otherwise known as the Local Government Code,
promoted the measures for local financial autonomy of the different LGUs of the
country. This law also stated that LGUs would be allotted a share from the
collection of taxes from the utilization of resources in their territorial jurisdiction.

Over the past decade, many local government units have stated that the
current share of the Internal Revenue Allotment is already insufficient in funding
the programs and projects of the local government. There is an urgent need to
increase the resource generation of the LGUs for them to be at par with the
growth of the national as well as the global economy.

This bill proposes to increase the share of the local government units to
fifty percent (50%) of the gross collection derived by the national government
from mining taxes, royalties, forestry and fishery charges and 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.

This bill likewise proposes that the share of the local government units
from the use of national wealth, and from any government agency or owned and
controlled corporation be remitted to them within ten (10) days after the end of
every quarter during the current fiscal year.

Hence, the approval and passage of this bill is earnestly sought.

TEODORICO T. HARESGO, JR.
Representative, Ang Kasangga Party-List


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
2671

House Bill No.

Introduced by Representative Teodorico T. Haresco, Jr.

AN ACT AMENDING SECTIONS 290 AND 291 OF REPUBLIC ACT 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 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 TO THEM 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 2. 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%) 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 3. All laws, decrees, executive orders, proclamations, rules and
regulations, or parts thereof inconsistent herewith are hereby repealed or
modified accordingly.

Section 4. 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 5. This Act shall take effect fifteen (15) days after its publication in at
least two (2) national newspapers of general circulation.

Approved,