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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO ‘BRO. EDDIE’ C. VILLANUEVA 
AN ACT  
PROMOTING LOCAL GOVERNMENT EMPOWERMENT  
IN ORDER TO ACHIEVE INCLUSIVE DEVELOPMENT,  
AMENDING FOR THE PURPOSE SECTION 284  
OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS 
THE LOCAL GOVERNMENT CODE OF 1991 
EXPLANATORY NOTE 
Republic Act No. 7160 or the Local Government Code of 1991 
(LGC) seeks to empower Local Government Units (LGUs) by giving them 
the authority to effectively formulate and implement their respective 
projects and programs by, among others, giving them a just share in the 
national taxes and empowering them to create their own sources of 
revenue.  
The share of the LGUs in national taxes is realized through the 
automatic and release of Internal Revenue Allotments (IRA) to each LGU. 
The IRA from the National Government enables the LGUs to fund their 
respective programs consistent with the national objective of effectively 
carrying out devolved functions.  
Aside from their right to a just share in national taxes, LGUs are also 
empowered under the LGC to create and broaden their own sources of 
October 24, 2022
8:00 am
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revenue, by giving them, for example, the power to tax the transfer of real 
property ownership. However, many LGUs continue to suffer from limited 
fiscal resources, and thus, fail to adequately provide services and 
programs to their constituents. To date, many LGUs continue to rely on 
direct provision from the national government especially for programs and 
projects that contribute to local development. 
 
To address the issue of scarce resources faced by many LGUs, this 
bill seeks to provide additional funding to LGUs by amending Section 248 
of the LGC by increasing their share in the national taxes from forty 
percent (40%) to fifty percent (50%).  
 
Given the abovementioned concerns, the immediate passage of this 
bill is earnestly sought. 
 
 
 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ____ 
Introduced by CIBAC Party-List Representative 
HON. EDUARDO ‘BRO. EDDIE’ C. VILLANUEVA 
AN ACT PROMOTING LOCAL GOVERNMENT EMPOWERMENT IN 
ORDER TO ACHIEVE INCLUSIVE DEVELOPMENT, AMENDING FOR 
THE PURPOSE SECTION 284 OF REPUBLIC ACT NO. 7160, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 
1991 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Section 284 of Republic Act No. 7160, otherwise 
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known as the “Local Government Code of 1991” is hereby amended to 
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read as follows: 
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“SEC. 284. Allotment of [Internal Revenue] Taxes. – 
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Local government units shall have a share in the national [internal 
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revenue] taxes based on the collection of the third fiscal year 
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preceding the current fiscal year as follows:  
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a) On the first year of the effectivity of this Code, thirty percent
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(30%);
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b) On the second year, thirty-five percent (35%); and
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c) On the third year and thereafter, FIFTY PERCENT (50%) [forty
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percent (40%).]
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x x x 
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SEC. 2. Implementing Rules and Regulations. – Within sixty (60) 
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days from the effectivity of this Act, the Secretary of Finance and the 
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Secretary of Budget and Management, in consultation with Department of 
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Interior and Local Government (DILG), the Leagues of Provinces, Cities 
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and Municipalities, Liga ng mga Barangay and other relevant 
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stakeholders, shall promulgate the necessary rules and regulations for the 
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effective implementation of this Act. 
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SEC. 3.  Separability Clause. – If any provision of this Act or the 
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application such provision to any person or circumstances is declared 
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unconstitutional, the remainder of the Act or the application of such 
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provision to other person or circumstances shall not be affected by such 
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declaration. 
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SEC. 4. Repealing Clause. – Any law, presidential decree or 
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issuance, executive order, letter of instruction, administrative order, rule 
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or regulation of the contrary to or inconsistent with any provision of this 
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Act is hereby repealed or modified accordingly. 
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SEC.  5.  Effectivity. – This Act shall take effect fifteen (15) days 
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from the date of its publication in the Official Gazette or in at least two (2) 
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newspapers of general circulation. 
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Approved, 
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