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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
9 
MAY -6 PI :47 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Since the passage of the Local Government. Code in 1991, various reviews have 
uncovered complications in the implementation of the law which could be addressed by 
simplifying the process involved or by further defining the relationship of LGUs vis-&vis 
other central government agencies ( k ,  Bureau of Internal Revenue). Moreover, there is 
also a need to address the leakages from local tax revenues resulting from local tax 
exemptions enjoyed by government corporations and business entities covered by 
investment promotion laws. 
Simplifying the business tax to a single rate of 2.5% of gross sales or receipts 
which could increase annual collections from 21.8 billion pesos to 54.5 billion 
pesos. 
Adjusting the minimum level of the community tax from 5 pesos to 30 pesos and 
raising the additional tax for every 1,000 pesos of income from 1 peso to 2 pesos 
which would increase the annual collections from 954 billion pesos to 1.9 billion 
pesos. 
Including in the Spas, Karaoke bars, country and sports clubs in the list of 
businesses subject to local business taxes. 
Specifically requiring the BIR to share tax information with LGUs. 
Removing the local tax exemptions of government corporations and business 
qualifying for investment incentives. 


These proposed initiatives would augment the collections of the local government 
units which they could use to fund their various projects. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
HAY -6 IJ 
1 4 7  
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
BROADENING THE SCOPE OF TAXING POWERS OF LOCAL GOVERNMENT UNITS 
(LGUs), AMENDING TITLE I, BOOK I1 OF REPUBLIC ACT 7160, OTHERWISE KNOWN 
AS THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 143 o f  the Code is hereby amended to read as follows: 
SEC. 143 Tax on Business. - The municipality may impose taxes on [the following] 
ANY business[es], including those subject to Franchise Tax under SEC. 137, AT RATES NOT 
EXCEEDING TWO AND A HALF PERCENT (2.5%) OF GROSS SALES OR RECEIPTS OF 
THE PRECEDING CALENDAR YEAR. 
IN THE CASE OF EWORTERS. INDIRECT EXPORTERS AND EXPORT SUB- 
CONTRACTORS, THE RATE SHALL BE ONE-HALF OF THE BUSINESS TAX RATE 
IMPOSED BY THE MUNICIPALITY IN ACCORDANCE WITH THE PRECEDING 
PARAGRAPH. 
[ (a) On manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and 
compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce 
of whatever kind or nature, in accordance with the following schedule: 
With gross sales or receipts for the Amount of Tax preceding calendar year in the amount of: 
Amount of Tax Per Annum 
Less than 10,000.00 
165.00 
P 10,000.00 or more but less than 15,000.00 
220.00 
15,000.00 or more but less than 20,000.00 
302.00 
20,000.00 or more but less than 30,000.00 
440.00 
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30,000.00 
or more but less than 40,000.00 
660.00 40,000.00 
or more but less than 50,000.00 825.00 
50,000.00 
or more but less than 75,000.00 
1,320.00 
75,000.00 
or more but less than 100,000.00 
660.00 
1,650.00 
2,200.00 
150,000.00 
or more but less than 200,000.00 
2,750.00 
200,000.00 
or more but less than 300,000.00 3,850.00 
300,000.00 
or more but less than 500,000.00 5,500.00 
500,000.00 
or more but less than 750,000.00 8,000.00 
750,000.00 
or more but less than 1,000,000.00 
10,000.00 
1,000,000.00 or more but less than 2,000,000.00 
13,750.00 
2,000,000.00 
or more but less than 3,000,000.00 
16,500.00 
3,000,000.00 
or more but less than 4,000,000.00 
19,800.00 
4,000,000.00 
or more but less than 5,000,000.00 
23,100.00 
5,000,000.00 
or more but less than 6,500,000.00 
24,375.00 
6,500,000.00 
or more at a rate not exceeding thirty-seven and a half percent (37 l/2%) of one 
percent (1 %) 
(b) On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature 
in accordance with the following schedule: 
With gross sales or receipts for the Amount of Tax preceding calendar year in the amount of: 
100,000.00 
or more but less than 150,000.00 
Amount ofTax 
Per Annum 
Less than P1,OOO.OO 
18.00 
P 1,000.00 
or more but less than P 2,000.00 33.00 
2,000.00 
or more but less than 3,000.00 
3,000.00 
or more but less than 4,000.00 
50.00 
72.00 
100.00 
121.00 
143.00 
4,000.00 or more but less than 5,000.00 
5,000.00 
or more but less than 6,000.00 
6,000.00 
or more but less than 7,000.00 
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7,000.00 or more but less than 8,000.00 
8,000.00 or more but less than 10,000.00 
10,000.00 or more but less than 15,000.00 
15,000.00 or more but less than 20,000.00 
20,000.00 or more but less than 30,000.00 
30,000.00 or more but less than 40,000.00 
40,000.00 or more but less than 50,000.00 
50,000.00 or more but less than 75,000.00 
75,000.00 or more but less than 100,000.00 
100,000.00 or more but less than 150,000.00 
150,000.00 or more but less than 200,000.00 
200,000.00 or more but less than 300,000.00 
300,000.00 or more but less than 500,000.00 
500,000.00 or more but less than 750,000.00 
750,000.00 or more but less than 1,000,000.00 
165.00 
187.00 
220.00 
275.00 
330.00 
440.00 
660.00 
990.00 
1,320.00 
1,870.00 
2,420.00 
3,300.00 
4,400.00 
6,600.00 
8.800.00 
1,000,000.00 or more but less than 2,000,000.00 10,000.00 
2,000,000.00 
or more at a rate not exceeding fifty percent (50%) of one percent (1%). (c) On 
exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers or retailers 
of essential commodities enumerated hereunder at a rate not exceeding one-half (1/2) of the rates 
prescribed under subsections (a), 0) 
and (d) of this Section: 
(1) Rice and corn; 
(2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved 
food, sugar, salt and other agricultural, marine, and fresh water products, whether in their 
original state or not; 
(3) Cooking oil and cooking gas; 
(4) Laundry soap, detergents, and medicine; 
(5) Agricultural implements, equipment and post- harvest facilities, fertilizers, pesticides, 
insecticides, herbicides and other farm inputs; 
(6) Poultry feeds and other animal feeds; 
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(7) School supplies; and 
(8) Cement. 
(d) On Retailers. 
With gross sales or receipts Rate of tax for the preceding calendar year of: 
Rate 
of 
Tax 
per annum 
P400,OOO.OO or less 
2% 
more than P400,OOO.OO 
1% 
Provided, however, That barangays shall have the exclusive power to levy taxes, as provided 
under Section 152 hereof, on gross sales or receipts of the preceding calendar year of Fifty 
thousand pesos (PS0,OOO.OO) or less, in the case of cities, and Thirty thousand pesos 
(P30,OOO.OO) or less, in the case of municipalities. 
(e) On contractors and other independent contractors, in accordance with the following schedule: 
With 
gross 
receipts 
for 
the 
preceding 
calendar 
year 
in 
the 
amount 
of: 
Amount of Tax Per Annum 
Less than P= 5,000.00 
27.50 
P 5,000.00 or more but less than P 10,000.00 
61.60 
10,000.00 or more but less than 15,000.00 
104.50 
15,000.00 or more but less than 20,000.00 
165.00 
20,000.00 or more but less than 30,000.00 
275.00 
30,000.00 or more but less than 40,000.00 
385.00 
40,000.00 or more but less than 50,000.00 
550.00 
50,000.00 or more but less than 75,000.00 
880.00 
75,000.00 or more but less than 100,000.00 
1,320.00 
100,000.00 or more but less than 150,000.00 
1,980.00 
150,000.00 or more but less than 200,000.00 
2,640.00 
200,000.00 or more but less than 250,000.00 
3,630.00 
250,000.00 or more but less than 300,000.00 
4,620.00 
300,000.00 or more but less than 400,000.00 
6,160.00 
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400,000.00 or more but less than 500,000.00 
500,000.00 or more but less than 750,000.00 
750,000.00 or more but less than 1,000,000.00 
10,250.00 1,000,000.00 or 
more but less than 2,000,000.00 
11,500.00 2,000,000.00 or more at a rate not 
exceeding fifty percent (50%) of one percent (1%) 
8,250.00 
9,250.00 
(f) On banks and other financial institutions, at a rate not exceeding fifty percent (50%) of one 
percent (1%) on the gross receipts of the preceding calendar year derived from interest, 
commissions and discounts from lending activities, income from financial leasing, dividends, 
rentals on property and profit from exchange or sale of property, insurance premium. 
(g) On peddlers engaged in the sale of any merchandise or article of commerce, at a rate not 
exceeding Fifty pesos (P50.00) per peddler annually. 
(h) On my business, not otherwise specified in the preceding paragraphs, which the sanggunian 
concerned may deem proper to tax: Provided, That on any business subject to the excise, value- 
added or percentage tax under the National Internal Revenue Code, as amended, the rate of tax 
shall not exceed two percent (2%) of gross sales or receipts of the preceding calendar year. The 
sanggunian concerned may prescribe a schedule of graduated tax rates but in no case to exceed 
the rates prescribed herein. ] 
SECTION 2. Section 146 of the Code is hereby amended to read as follows: 
SEC. 146. Payment of Business Taxes. - (a) The taxes imposed under SEC. 143 shall 
be payable for every separate or distinct establishment or place where business subject to the tax 
is conducted and one line of business does not become exempt by being conducted with some 
other business for which such tax has been paid. The tax on a business must be paid by the 
person conducting the same. 
(b) In cases where a person conducts or operates two (2) or more [of the] businesses [menlioned 
in SEC. 143 of this Code] which are subject to the same rate o f  tax, the tax shall be computed on 
the combined total gross sales or receipts of the said two (2) or more related businesses. 
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(c) In cases wherc a person conducts or operates two (2) or more businesses [mentioned in SEC. 
143 of this Code] which are subject to different rates of tax, the gross sales or receipts of each 
business shall be separately reported for the purpose of computing the tax due from each 
business.” 
SECTION 3. Section 148 (b) is hereby amended to read as follows: 
SEC. 148 Fees for Sealing and Licensing of Weights and Measures. 
(a) XXX 
@) The Sangguniang Bayan shall prescribe the necessary regulations for the use of such 
weights and measures, subject to such guidelines as shall be prescribed by the 
Department of Science and Technology. 
The Sanggunian concerned shall, by 
appropriate ordinance, penalize fraudulent practices and unlawrul possession or use of 
instruments of weights and measures and prescribe the criminal penalty therefore in 
accordance with the provisions of this Code. Provided, however, That the Sanggunian 
concerned may authorize the municipal treasurer to settle an offence not involving the 
commission of fraud before a case therefore is filed in court, upon payment of a 
compounded penalty AS PRESCRIBED BY THE SANGGUNIAN BUT of not less than 
[Two liundred pesos (P2OO)J ONE THOUSAND PESOS (P1,OOO). THE SANGGUNIAN 
MAY INCREASE THE CEILING ON THE PROFESSIONAL TAX ONCE EVERY 
THREE (3) YEARS BASED ON THE PAST THREE (3) YEAR AVERAGE OF THE 
CONSUMER PRICE INDEX AS OFFICIALLY PUBLISHED BY THE NATIONAL 
STATISTICS COORDINATING BOARD”. 
SECTION4. 
Section 149 (a) and (b) (3) of the Code is hereby amended to read as 
follows: 
SEC. 149. Fishery Rentals, Fees and Charges. 
(a) Municipalities shall have the exclusive authority to grant fishery privileges in the municipal 
waters and impose rentals, fees or charges therefore in accordance with the provisions of this 
[Code] SECTION; PROVIDED THAT, RENTALS, FEES OR CHARGES ARE BASED ON 
ESTIMATES OF RESOURCE RENT AS DETERMINED BY THE SANGGUNIAN 
CONCERNED IN CONSULTATION WITH THE FISHERIES AND AQUATIC RESOURCE 
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MANAGEMENT COUNCILS (FARMC) ESTABLISHED UNDER REPUBLIC ACT 
NUMBER 8550, OTHERWISE KNOWN AS THE PHILIPPINE FISHERIES CODE OF 1998. 
(b) 
(1) xxx 
(2) xxx 
(c) Issue licenses for the operation of fishing vessels of three (3) tons or less for which purpose 
the Sangguniang Bayan shall promulgate rules and regulations regarding the issuances of such 
licenses to qualified applicants under existing laws. PROVIDED THAT THE TOTAL 
NUMBER OF LICENSES ISSUED IN CONSONANT WITH THE TOTAL ALLOWABLE 
CATCH AS DETERMINED BY THE SANGGUNIAN CONCERNED, IN CONSULTATION 
WITH THE FISHERIES AND AQUATIC RESOURCE MANAGEMENT COUNCILS 
(FARMC). 
SECTION 5. Section 150 of the Code is hereby amended to read as follows: 
SEC. 150. Situs of the Tax. - (a) For purposes of collection of the taxes under SEC. 
143 of this Code, [manufacturers, assemblers, repackers, brewers, distillers, rectifiers and 
compounders of liquor, distilled spirits and wines, millers, producers, exporters, wholesalers, 
distributors, dealers, contractors, 
and other] ALL 
businesses[,] maintaining or operating branch or sales outlet elsewhere shall record the sale in 
the branch or sales outlet making the sale or transaction, and the tax thereon shall accrue and 
shall be paid to the CITY OR municipality where such branch or sales outlet is located. In cases 
where there is no such branch or sales outlet in the city or municipality where the sale or 
transaction is made, the sale shall be duly recorded in the principal office and the taxes due shall 
accrue and shall be paid to such city or municipality. 
(b) The following sales allocation shall apply to [manufacturers, assemblers, contractors, 
producers, and expoiiers] ALL BUSINESSES with factories, project offices, plants, and 
plantations in the pursuit of their business: 
(1) Thirty percent (30%) of all sales recorded in the principal office shall be taxable by the city 
banks and other financial institutions, 
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or municipality where the principal office is located; and 
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(2) Seventy percent (70%) of all sales recorded in the principal office shall be taxable by the city 
or municipality where the factory, project office, plant, or plantation is located. 
(c) In case of a plantation located at a place other than the place where the factory is located, said 
seventy percent (70%) mentioned in subparagraph (b) of subsection (2) above shall be divided as 
follows: 
(1) Sixty percent (60%) to the city or municipality where the factory is located; and 
(2) Forty percent (40%) to the city or municipality where the plantation is located. 
(d) In cases where a [manufacturer, assembler, producer, exporter or contractor] BUSINESS has 
two (2) or more factories, project offices, plants, or plantations located in different localities, the 
seventy percent (70%) sales allocation mentioned in subparagraph (b) of subsection (2) above 
shall be prorated among the localities where the factories, project offices, plants, and plantations 
are located in proportion to their respective volumes of production during the period for which 
the tax is due. 
SECTION 6. Section 15 1 of the Code is hereby amended to read as follows: 
SEC. 151. Scope of Taxing Powers. - Except as otherwise provided in this Code, the 
city, may levy the taxes, fees, and charges which the province or municipality may impose: 
Provided, however, That the taxes, fees and charges levied and collected by highly urbanized and 
independent component cities shall accrue to them and distributed in accordance with the 
provisions of this code. 
SECTION 7. Section 152 of the Code is hereby amended to read as follows: 
SEC. 152. Scope of Taxing Powers. - The Barangays may levy taxes, fees and charges, 
as provided in this Article, which shall exclusively accrue to them: (a) Taxes - On stores or 
retailers with fixed business establishments with gross sales or receipts of the preceding calendar 
year or [Fifty] ONE HUNDRED Thousand pesos [(P50,000)] (P100,OOO) or less, in the case of 
cities and [Thirty] SIXTY thousand pesos [(P30,000)] (P60,OOO) 
or less, in the case of 
municipalities, at a rate not exceeding one percent (1%) on such gross sales or receipts. 
SECTION 8. Section 155 ofthe Code is hereby amended to read as follows: 
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SEC. 155 Toll Pees or Charges. - The Sanggunian concerned may prescribe the terms 
and conditions and fix the rates for the imposition of toll fees or charges for the use of any public 
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road, pier or wharf, waterway, bridge, ferry or telecommunication system funded and constrncted 
by the local government unit concerned[: Provided, That no such toll fees or charges shall be 
collected from officers and enlisted men of the Armed Forces of the Philippines and members of 
the Philippine National Police, on mission, post office personnel delivering mail, physically- 
handicapped, and disabled who are sixty-five (65) years or older.] EXCEPT GOVERNMENT 
VEHICLES. 
SECTION 9. Section 157 of the Code is hereby amended to read as follows: 
SEC. 157 Individuals Liable to Community Tax. - Every inhabitant of the Philippines 
eighteen (1 8) years o f  age or over who has been regularly employed on a wage or salary basis for 
at least thirty (30) consecutive working days during any calendar year, or who is engaged in 
business or occupation, or who owns real property with an aggregate market value of One 
thousand pesos (P1,OOO) or more, or who is required by law to file an income tax return shall pay 
an annual community tax of NOT MORE THAN [Five] THIRTY pesos [(P5)] (P30) and an 
annual additional tax of NOT MORE THAN [One Peso (Pl)] TWO PESOS (P2) for every One 
Thousand pesos (P1,OOO) of income [regardless of whether] from business, exercise of 
profession, EMPLOYMENT or from property [which in no case shall exceed Five Thousand 
pesos (PS,OOO)]. In the case of husband and wife, the additional tax herein imposed shall be 
based upon the total property owned by them and the total gross receipts or earnings derived by 
them. PROVIDED, THAT DISABLED PERSONS AND SENIOR CITIZENS NOT 
GAINFULLY EMPLOYED,NOT ENGAGED IN BUSINESS OR EARNING LESS THAN 
SIXTY THOUSAND PESOS (P60,OOO.OO) ANNUALLY SHALL PAY A FIX AMOUNT OF 
THIRTY PESOS (P30). 
SECTION 10. Section 158 of the Code is hereby amended to read as follows: 
SEC. 158. 
Juridical Persons Liable to Community Tax. - Every corporation no 
matter how created or organized, whether domestic or resident foreign, engaged in or doing 
business in the Philippines shall pay an annual community tax of [Five hundred] ONE 
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THOUSAND pesos [(P=500)] (P1,OOO) and an annual additional tax [, which, in no case, shall 
exceed Ten thousand pesos (P=lO,OOO)] in accordance with the following schedule: 
(1) For every [Five thousand pesos (P5,000.00)] ONE THOUSAhT PESOS(P1,OOO) worth of 
real property in the Philippines owned by it during the preceding year based on the valuation 
used for the payment of the real property tax under existing laws, found in the assessment rolls of 
the city or municipality where the real property is situated - [Two Pesos (P2.00)] THREE 
PESOS (P3.00); and 
(2) For every [Five thousand pesos (P5,OOO)l ONE THOUSAND PESOS (P1,OOO) of gross 
receipts or earnings derived by it from its business in the Philippines during the preceding year - 
[Two Pesos (P2.00)] THREE PESOS (l'3.00). The dividends received by a corporation from 
another corporation however shall, for the purpose of the additional tax, be considered as part of 
the gross receipts or earnings of said corporation. 
SECTION 11. Section 162 of the Code is hereby amended to read as follows: 
SEC. 162. Community Tax Certificate. - A community tax certificate shall be issued 
to every person or corporation upon payment of the community tax. A community tax certificate 
may also be issued to any person or corporation not subject to the community lax upon payment 
of [One (1) peso.] THIRTY PESOS (P30). 
SECTION 12. Section 171 of the Code is hereby amended to read as follows: 
Sec. 171. Examination of Books of Accounts and Pertinent Records of Businessmen 
by Local Treasurers. - The provincial, city, municipal or Barangay treasurer may, by himself or 
through any of his deputies duly authorized in writing, examine the books, accounts, and other 
pertinent records o f  any person, partnership, corporation, or association subject to local taxes, 
fees and charges in order to ascertain, assess, and collect the correct amount of the tax, fee, or 
charge. Such examination shall be made during regular business hours, only once for every tax 
period, and shall be certified to by the examining official. Such certificate shall be made of 
record in the books of accounts of the taxpayer examined. 
In case the examination herein authorized is made by a duly authorized deputy of the local 
treasurer, the written authority o f  the deputy concerned shall specifically state the name, address, 
and business of the taxpayer whose books, accounts, and pertinent records are to be examined, 
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the date and place of such examination, and the procedure to be followed in conducting the same. 
For this purpose, the records of the revenue district office of the Bureau of Internal Revenue 
shall be made available to the local treasurer, his deputy or duly authorized representative. THE 
REVENUE DISTRICT OFFICER SHALL, UPON REQUEST, FURNISH THE CITY OR 
MUNICIPAL TREASURER, SUCH OTHER PERTINENT INFORMATION REQUIRED IN 
S A D  EXAMINATION. THE CITY AND MUNICIPAL TREASURERS SHALL AT ALL 
TMES KEEP SAID INFORMATION RECEIVED BY HIM, HIS DEPUTY OR DULY 
AUTHORIZED REPRESENTATIVE AS STRICTLY CONFIDENTIAL AND SHALL BE 
USED ONLY TO ASCERTAIN, ASSESS, AND COLLECT THE CORRECT AMOUNT OF 
LOCAL TAX, FEE OR CHARGE. SUCH RECORDS SHALL NOT RE DIVULGED TO ANY 
THIRD PERSONS EXCEPT UPON ORDER OF COURT OF COMPETENT JURISDICTION. 
THE CITY OR MUNICPAL TREASURER OR HIS DULY AUTHORIZED DEPUTY OR 
REPRESENTATIVE SHALL BE ADMINISTRATIVELY LIABLE FOR ITS DISCLOSURE 
TO ANY THIRD PARTY OR PERSON, WITHOUT PREJUDICE TO PROSECUTION 
UNDER EXISTING LAWS. 
THE EXAMINATION SHALL BE MADE DURING REGULAR BUSINESS HOURS NOT 
OFTENER THAN ONCE A YEAR FOR EVERY TAX PERIOD, WHICH SHALL BE THE 
YEAR IMMEDIATELY PRECEEDING THE EXAMINATION, AND SHALL BE 
CERTIFIED B Y THE EXAMINING OFFICIAL. SUCH CERTIFICATION SHALL BE 
MADE OF RECORD IN THE BOOKS OF ACCOUNTS OF THE TAXPAYER EXAMINED. 
ALL BUSINESSES SHOULD KEEP PROPER BOOKS OF ACCOUNTS. IN THE CASE OF 
BUSINESSES WITH REVENUES ABOVE SIX HUNDRED THOUSAND PESOS 
(P600,000.00), 
THE FINANCIAL STATEMENTS MUST BE AUDITED BY A CERTIFIED 
PUBLIC ACCOUNTANT. 
FOR BUSINESSES WITH REVENUES ABOVE ONE 
HUNDRED THOUSAND PESOS (PlO0,OOO.OO) BUT BELOW SIX HUNDRED THOUSAND 
PESOS (P600,000.00), THE ACCOUNTS SHOULD BE PREPARED BY A BOOKKEEPER. 
SECTION 13. Section 188 of the Code is hereby amended to read as follows: 
SEC. 188 Publication of Tax Ordinances and Revenue Measures -Within FIFTEEN 
(15) [ten] days after their approval, certified true copies of all provincial, city and municipal tax 
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ordinances or revenue measures shall be published in full for three (3) consecutive days in a 
DAILY newspaper PUBLISHED AND CIRCULATED LOCALLY [of local circulation] OR 
ONCE A WEEK FOR THREE (3) CONSECUTIVE WEEKS IN CASE OF A WEEKLY 
NEWSPAPER PUBLISHED AND CIRCULATED LOCALLY [Provided, however: That], [i] 
In provinces, cities, and municipalities where there are no newspapers THAT ARE PUBLISHED 
AND CIRCULATED LOCALLY [of local circulation], the same [may] SHALL INSTEAD be 
posted FOR AT LEAST ONE ( 1 )  MONTH in PROVINCIAL CAPITOLS, CITY OR 
MUNICIPAL HALLS, ALL BARANGAY HALLS AND OTHER [at least two (2)] 
conspicuous and publicly accessible places. 
SECTION 14. Section 192 of the Code is hereby amended to read as follows: 
SEC. 192 Authority to grant Local Tax Exemption Privileges 
- UNLESS 
OTHERWISE PROVIDED IN THIS CODE, THE local government units [may], through duly 
[ordinances] approved ORDINANCES, MAY grant tax exemptions, incentives or reliefs FOR 
THE PURPOSE OF PROMOTING OR ENCOURAGING INVESTMENTS IN THEIR 
JURISDICTIONS, under such terms and conditions as they may deem necessary; PROVIDED 
THAT THE DURATION OF SUCH INCENTIVES SHALL NOT EXCEED FIVE (5) 
CONSECUTIVE YEARS FROM THE EFFECTIVE DATE GRANTING THE INCENTIVE: 
PROVIDED, FURTHER THAT SUCH INCENTIVE SHALL BE AVAILED ONLY ONCE. 
SECTION 15. Section 193 of the Code is hereby amended to read as follows: 
SEC. 193 Withdrawal of Tax Exemption Privileges. - Unless otherwise provided in 
this Code, tax exemptions or incentives granted to, or presently enjoyed by all persons, whether 
natural or juridical, including government-owned or controlled corporations, AND OTHER 
SIMILAR GOVERNMENT AGENCIES OR ENTITIES GENERATING REVENUES AS 
DETERMINED BY THE DEPARTMENT OF FINANCE SUCH AS, BUT NOT LIMITED TO 
PHILIPPINE PORTS AUTHORITY, MANILA INTERNATIONAL AIRPORT AUTHORITY, 
PHILIPPINE RECLAMATION AUTHORITY, PHILIPPINE RETIREMENT AUTHORITY 
[,except local water districts, cooperatives duly registered under R.A. 6398, non-stock and non- 
profit hospitals and educational institutions,] are hereby withdrawn effective January 1,2009. 
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EXCEPT AS PROVIDED HEREIN, NO LAW PROVIDING TAX EXEMPTION FROM 
LOCAL GOVERNMENT TAXES, FEES AND CHARGES SHALL BE ENACTED 
WITHOUT PRIOR CONSULTATION WITH THE LEAGUE OF CITIES, LEAGUE OF 
PROVINCES, LEAGUE OF MUNICIPALITIES AND LIGA NG MGA BARANGAY AND 
PRIOR RECOMMENDATION OF THE DEPARTMENT OF FINANCE. 
SECTION 16. Separability Clause. - If any provision or part thereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 17. Repealing Clause. - All laws, presidential decree or issuance, executive 
orders, letter of instruction, administrative order, rule and regulation contrary to, or inconsistent 
with the provisions of this Act are hereby repealed, modified, or amended accordingly. 
SECTION 18. Effectivity Clause. - This Act shall take effect fifteen (15) days following 
its publication in at least two (2) newspapers of general circulation. 
Approved, 
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