Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill No, 3231

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

EXPLANATORY NOTE

The provinces, cities, municipalities, and barangays are the territorial
and political subdivisions of the Republic of the Philippines (Section 1,
Article X, 1987 Constitution): they are referred to as the Local Government
Units (LGU’s).

Section 6, Article X of the 1987 Constitution provides: Local
government units shall have a just share as determined by law, in the
national taxes which shall be automatically released to them. On the other
hand, the last paragraph of Section 285, RA 7160 otherwise known as the
Local Government Code of 1991 as Amended provides: Provided, finally, That
the financial requirements of barangays created by local government units
after the affectivity of this Code shall be the responsibility of the local
government unit concerned. This apparent conflict of the constitutional and
the statutory provision resulted from the violation of the legal maxim “Ubi
lex non distinguit nec nos distinguire debemus”, translated as when the law
does not distinguish, we must not distinguish.

Barangays can be created either by an act of Congress or by an
ordinance passed by the Sangguniang Panlalawigan or Sangguniang
Panlungsod as the case maybe (Section 6, RA 7160). The “Local Government
Units” referred to in Section 6 of the Constitution include the barangay
regardless of the mode of its creation. Therefore, the last paragraph of
Section 285 of the Local Government Code is directly in conflict with the
Constitution and no authority or legal right must be derived from it.



Barangays as the basic political units, serve as the primary planning
and implementing units of government policies, plans, programs, projects,
and activities in the community (Section 384, RA 7160). It would be
anomalous to expect from barangays created under the Local Government
Code to properly discharge this role if they are deprived of their just share in
the internal revenue taxes. Hence, the removal of the last paragraph of
Section 285 of RA 7160 will give the barangays the means to comply with
their responsibilities and mandate to the people, and to reconcile once and
for all the constitutional and statutory provisions as discussed above.

For the reasons cited, the approval of this bill is therefore, earnestly

requested.
pie AMANTE


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

3231

House Bill No.

Introduced by Honorable ERLPE JOHN “PING” M. AMANTE

AN ACT
GRANTING THE BARANGAYS CREATED UNDER REPUBLIC ACT 7160,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 AS
AMENDED, THEIR INTERNAL REVENUE ALLOTMENT (IRA), AMENDING
FOR THIS PURPOSE SECTION 285 OF REPUBLIC ACT 7160, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives in session
assembled:

SECTION 1. Title. - This Act shall be known and cited as the
“Barangay IRA Act of 2013”.

SECTION 2. Declaration of Policy. — It is hereby declared to be the
policy of the State that Barangay is the basic political unit, and as such,
serve as the primary planning and implementing units of government
policies, plans, programs, projects, and activities in the community. Hence,
a barangay must be provided with sufficient support for it to properly
discharge its noble duty to the people.

SECTION 3. Definition of IRA. - As used in this Act, IRA means
Internal Revenue Allotment as defined and computed in Section 285 of
Republic Act 7160.

SECTION 4. Section 285 of Republic Act 7160, otherwise known as
the Local Government Code of 1991, is hereby amended by removing the
entire last paragraph of the said provision to read as follows:


Section 285. Allocation to Local Government Units. - The share
of local government units in the internal revenue allotment shall
be collected in the following manner:

(a) Provinces - Twenty-three percent (23%);

(b) Cities - Twenty-three percent (23%);

(c) Municipalities - Thirty-four percent (34%); and

(d) Barangays - Twenty percent (20%)

Provided, however, That the share of each province, city, and
municipality shall be determined on the basis of the following
formula:

(a) Population - Fifty percent (50%);

(b) Land Area - Twenty-five percent (25%); and

(c) Equal sharing - Twenty-five percent (25%)

Provided, further, That the share of each barangay with a
population of not less than one hundred (100) inhabitants shall
not be less than Eighty thousand (P80,000.00) per annum
chargeable against the twenty percent (20%) share of the
barangay from the internal revenue allotment, and the balance
to be allocated on the basis of the following formula:
(a) On the first year of the effectivity of this Code:
(1) Population - Forty percent (40%); and
(2) Equal sharing - Sixty percent (60%)
(b) On the second year:
(1) Population - Fifty percent (50%); and
2) Equal sharing - Fifty percent (50%)
(c) On the third year and thereafter:
(1) Population - Sixty percent (60%); and
(2) Equal sharing - Forty percent (40%).

SECTION 5. Period of release. — Newly created barangays under the Local
Government Code of 1991 shall be entitled to their Internal Revenue
Allotment only on the third fiscal year after the year wherein they were
created, and must be based on the internal revenue taxes on the year they
were created.

SECTION 6. The Department of Budget and Management, in coordination
with the Department of Finance and the Department of Interior and Local
Government shall issue the necessary rules and regulations within sixty (60)
days after the effectivity of this Act.

SECTION 7. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations, or parts thereof inconsistent herewith
are hereby repealed or modified accordingly.

SECTION 8. 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 9. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) national newspapers of general circulation.

Approved,