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

HOUSE OF REPRESENTATIVES

1887

Introduced by Representative Ben P. Evardone

EXPLANATORY NOTE

Republic Act 7160 (The Local Government Code of 1991) paved the way for
local autonomy through decentralization and fiscal autonomy. In furtherance of this
end, this bill seeks to amend Sections 290 and 291 of the Local Government Code
(LGC).

‘The Internal Revenue Allotment, to a great extent, has been the “bread and
butter” of the local governments. However, this alone is insufficient. Thus, further
intensification of local fiscal resource generation is deemed necessary to bring
government services closer to the doorsteps of the Filipino people.

This bill proposes an increase in the share of the LGUs to 60% (from 40%)
of the gross collection derived by the national government 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.

It is likewise proposed that the share of LGUs from the use of national
wealth, and from any government agency or -owned and -controlled corporation be
remitted to them within ten days after the end of every quarter during the current
fiscal year.

Hence, approval of this bill is earnestly requested.

BI £ VARDONE

e, Lone District of Eastern Samar



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

HOUSE OF REPRESENTATIVES
House Bill No,_188'7

Introduced by Representative Ben P. Evardone

5 AN ACT
AMENDING 290 AND 291 OF REPUBLIC ACT 7160, OTHERWISE KNOWN AS
‘THE LOCAL GOVERNMENT CODE OF 1991 3

Be it enacted by the Senate and House of Represenfafives of the Philippines in
Congress assembled:

SECTION I, Section 290 of RA 7160 is hereby amended to read as follows:

Section 290. Amount of Share of Local Government Units. ~ Local
government units shall, in addition to the intemal revenue allotment, have a share
of (forty percent (40%)) SIXTY PERCENT (60%) 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 their territorial jurisdiction;
PROVIDED, THAT THE SHARES OF THE LOCAL GOVERNMENT UNI
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


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b. Forty percent (40%) of the mining taxes, royalties, forestry and 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 HE!
PROVISIONS OF THIS ACT.

SHALL IMPLEMENT THE
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,