Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL.NO.__1831

Introduced by:
HON. BERNARDO M. VERGARA

Explanatory Note

Pursuant to Republic Act No. 7160, otherwise known as the Local Government Code
of 1991, local government units are guaranteed in their enjoyment of local autonomy to
ensure their fullest development as self-reliant communities. The mandate, as supported from
Constitutional direction, makes it possible for LGUs to become effective partners in attaining
national development and social progress.

‘This bill reiterates the intent of HB No. 3195, introduced by the Hon. Mauricio G.
Domogan of the Lone District of Baguio in the 14" Congress, approved by the House and
transmitted to the Senate in 2009. As stated in said measure, this initiative seeks to further
strengthen local autonomy, by mandating the direct remittance to host local governments of
their 40% share of the gross collection derived by the National Government from the
preceding fiscal year from the utilization and development of national wealth within their
territorial jurisdiction.

Amending the pertinent provisions of the Local Government Code, specifically
Section 290 therein, will accomplish the desired objective of ensuring that host local
government units will get their mandated tax share from national wealth utilization and
development on time, unencumbered by bureaucratic procedures presently in place. Local
development initiatives are therefore assured of appropriate funding from tax sources that are
legitimately theirs as a matter of autonomous right, for their LGUs to use as an economic
resource of self-reliant communities.

Approval of this bill is earnestly sour
whose territorial jurisdiction the national we§
achieve national development goals.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon City

FIFTEENTH CONGRESS
irst Regular Session

HOUSE BILLNO.__1831

Introduced by:
HON. BERNARDO M. VERGARA

PROVIDING FOR THE DIRECT REMITTANCE TO TI i
GOVERNMENT UNIT OF ITS 40% SHARE OF THE GROSS COLL!
FROM THE NATIONAL WEALTH TAX, AMENDING SECTION 290 OF
ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNME!
1991

ION DERIVED
UBLIC
T CODE OF

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress,

assembled:

SECTION I. Section 290 of Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, is hereby amended to read as follows:

“SEC. 290. Amount of Share of Local Government Units — Local government

Units shall, in addition to the internal revenue allotment, have a share of forty (40%)

per cent of the gross collection derived by the National Government from the
preceding

fiscal year from mining taxes, royalties, forestry and fishery charges, OTHER

NATURAL RESOURCE UTILIZATION AND DEVELOPMENT FEES, and such

other taxes, fees, or charges, including related Surcharges, interests, or fines, and from

its share in any co-produc 1, joint venture, OR SHARING AGREEMENT ON

PRODUCTION OR NATURAL RESOURCE USE in the utilization and
ion|.]; PROVIDED,
‘SONS, NATURAL OR JURIDICAL, ENGAGED IN UTILIZATION
AND DEVELOPMENT OF NATIONAL WEALTH, SHALL PAY DIRECTLY.
SUCH FORTY (40%) SHARE TO THE HOST LOCAL GOVERNMENT UNITS.
AND THE REMAINING SIXTY (60%) TO THE NATIONAL GOVERNMENT.”

SECTION 2. All laws, decrees, executive orders, rules and regulations which are
inconsistent with this Act are hereby repealed, amended or modified accordingly.

SECTION 3. This Act shall take effect upon its approval.

Approved,