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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

nae 5400
HOUSE BILL No,

Introduced by HONORABLE. LANT MERCADO-REVILLA.

EXPLANATORY NOTE

The Constitution, Article I, Section 25 states: “The State shall ensure the autonomy of
local governments.” Further, Article X, Section 6 mandates: “Local government units shal} have
a just share, as determined by law, in the national taxes which shall be automatically released to
them.”

This bill aims to amend Section 290 and 291 of the Local Government Code of 1991.
Specifically, it seeks to increase the share of the local government units (LGUs) to fifty percent
(50%) of the gross collection derived by the national government in the preceding fiscal year
from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges,
including related surcharges, interests, or fines, and from its share in any co-production, joint
venture or production sharing agreement in the utilization and development of the national
wealth within their territorial jurisdiction.

The proposed 50% share of the local governments units from the use of national wealth,
and from any government agency or -owned and -controlled corporation shall be remitted 16
them within ten (10) days after the end of every quarter during the current fiscal year.

‘This proposed bill is consistent with the promotion and enhancement of local financial
autonomy of LGUs in order that they can enjoy genuine and meaningful focal autonomy to
enable them to attain their fullest development as self-reliant communities

In view of the foregoing reasons, the approval of this bill is earnestly sought.

Me ecavo-nevnsa

Second District, Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 54600

Totroduced by HONORABLE LANI MERCADO-REVILLA

AN ACT AMENDING SECTIONS 290 AND 291 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 290 of RA 7160 is hereby amended and shall read as follows:

Section 290. Amount of Share of Local Goverument Units. - Local government
units shall, in addition to the internal revenue allotment, have a share of [forty percent
(40%)] FIFTY PERCENT (50%) of the gross collection derived by the national
government [from] IN the preceding fiscal year from mining taxes, royalties, forestry
and fishery charges, and such other taxes, fees, or charges, including related surcharges,
interests, or fines, and from its share in any co-production, joint venture or production
sharing agreement in the utilization and development of the national wealth within their
territorial jurisdiction. PROVIDED, THAT THE SHARES OF THE LOCAL
GOVERNMENT UNITS CONCERNED SHALL BE REMITTED TO THEM
WITHIN TEN (10) DAYS AFTER THE END OF EVERY QUARTER DURING
‘THE CURRENT FISCAL YEAR.

THERE SHALL BE A COMMITTEE COMPOSED OF THE
REPRESENTATIVES OF THE TAXPAYERS, THE DEPARTMENT OF
FINANCE, THE DEPARTMENT OF BUDGET AND MANAGEMENT, AND THE
LOCAL GOVERNMENT UNIT CONCERNED TASKED TO FORMULATE THE
NECESSARY PROCEDURE FOR THE EFFECTIVE IMPLEMENTATION OF
THIS PROVISION, AND WHICH SHALL SUBMIT ITS REPORT TO THE
COMMITTEE ON LOCAL GOVERNMENT OF BOTH HOUSES OF
CONGRESS.

SECTION 2. Section 291 of RA 7160 is hereby amended and shall read as follows:

Section 291. Share of the Local Governments from any Government Agency or -
Owned and -Controlled Corporation. - Local government units shall have a share based
on the preceding fiscal year from the proceeds derived by any government agency or
government-owned or -controlled corporation engaged in the utilization and development
of the national wealth based on the following formula whichever will produce a higher
share for the local government unit:

a One percent (1%)} of the gross sales or receipts of the preceding calendar year;
or

b. [Forty percent (40%)] FIFTY PERCENT (50%) of the mining taxes, royalties,
forestry and fishery charges and such other taxes, fees or charges, including


related surcharges, interests, or fines the government agency or government -
owned or -controlled corporation would have paid if it were not otherwise
exempt.

PROVIDED THAT, THE SHARES OF THE LOCAL GOVERNMENT UNITS
CONCERNED SHALL BE REMITTED TO THEM WITHIN TEN (10) DAYS
AFTER THE END OF EVERY QUARTER DURING THE CURRENT FISCAL
YEAR.

THE COMMITTEE CREATED HEREIN SHALL IMPLEMENT THE
PROVISIONS OF THIS ACT.

SECTION 3. Repealing Clause. - All laws, decrees, executive orders, proclamations, rules and
regulations, or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

SECTION 4. Separability Clause. - If any provision of this Act is hetd invalid or
unconstitutional, the other provisions not affected hereby shall remain valid and subsisting.

SECTION 5. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) national newspapers of general circulation.

Approved,