THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
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5 
FEB 28 P I  :05 
S E N A T E  
1933 
S.B. No. 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The barangays, as institutionalized in the Local Government Code of 1991, is 
the basic unit of our political structure. Like municipalities, cities and provinces, 
barangays are mandated to perform certain duties and functions. It i s  also mandated 
to be self-reliant, which requires that it must raise its own revenue so that it can 
efficiently and effectively provide and delivers the basic services and facilities to its 
inhabitants. 
Although the Local Government Code has generous provisions identifying 
the sources of revenue for the barangays, some of these, however, are vague as to 
when the barangays shall enjoy the same. 
Specifically, Section 164 provides that barangays are entitled to a share of up 
to fifty percent (50%) of its community tax collection. However, while the said 
proviso provides that the share of the national government from the community tax 
collection shall remitted by the city or municipality concerned within ten (10) days 
after the end of each quarter, it is silent as to when the barangay shall receive its 
share. 
In practice, the city or municipality concerned releases to the barangay its 
share only when the latter asks for it. Lamentably, in most cases, the release takes a 
long time, thereby causing delays in the rendition of basic services to the 
constituents. Meanwhile, the city or municipality deposits the share of the barangay 
with its depository bank under a time deposit account and 'enjoy the interest 
accruing thereto. 
This bill, therefore, seeks to correct the situation 
It is proposed that Section 164 (c) (2) be amended to the effect that the 
barangay treasurer concerned shall automatically retain the fifty percent (50%) share 
of barangays in the community tax collected and remit the share of the city or 
municality within ten (10) days after the end of each month. 
Approval of this bill, therefore, is earnestly sought 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
193 
S.B. No. 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT PROVIDING FOR THE AUTOMATIC RETENTION 
COMMUNITY TAX COLLECTED BY SAID BARANGAY, 
AMENDING SECTION 164 OF THE LOCAL GOVERNMENT CODE OF 1991 
BY THE BARANGAY OF ITS FIFTY PERCENT (50%) SHARE IN THE 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled 
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SECTION 1. Section 164 of Republic Act No. 71 60, otherwise known as the 
Local Government Code of 1991 is hereby amended tread as follows : 
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“SEC. 
164. Printing of Community Tax Certificate and 
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Distribution of Proceeds - (a) The Bureau of Internal Revenue 
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shall cause the printing of community tax certificate and 
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distribute the same to the cities and municipalities through the 
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city and municipal treasurers in accordance with prescribed 
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regulations. 
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The proceeds of the tax shall accrue to the general funds of the 
cities, municipalities and barangays except a portion thereof 
which shall accrue to the general fund of the National 
Government to cover the actual cost of printing and 


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distribution of the forms and other related expenses The city or 
municipality treasurer the said share of the 
National 
Government in the proceeds of the tax within ten (IO) days 
after the end of each quarter. 
The city or municipality treasurer shall deputize the barangay 
treasurer to collect the community tax in their respective 
jurisdictions: Provided, however, that said barangay treasurer 
shall be bonded in accordance with existing laws. 
The proceeds of the community tax actually and directly 
collected by the city or municipal treasurer shall accrue 
entirely to the general fund of the city or municipality 
concerned. However, proceeds of the community tax collected 
through the barangay treasurers shall be apportioned as 
follows: 
Fifty percent (50%) shall accrue to the general fund of 
the city or municipality concerned; and 
Fifty percent (50%) shall accrue to the barangay [where 
tax is collected] WHICH COLLECTED TAX. 
THE 
BARANCAY 
TREASURER 
CONCERNED 
SHALL 
AUTOMATICALLY RETAIN THE SHARE OF THE BARANGAY 
AND REMIT THE SHARE OF THE CITY OR MUNICIPALITY, 
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CONCERNED WITHIN TEN (IO) DAYS AFTER THE END OF 
THE MONTH. 
SECTION. 2. Repealing Clause - All laws, executive orders, rules and 
regulations contrary to the provisions of this Act are hereby repealed or modified 
accordingly. 
SECTION. 3. Separability Clause - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not affected shall remain in full 
force and effect. 
SECTION. 4. Effectivity Clause - This Act shall take effect immediately 
following its publication in the Official Gazette or in two (2) newspapers of general 
circulation, whichever come first. 
Approved,