FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1419 
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Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
'i'l.¥ 
JUL 13 P4 :12 
Under the present system, it usually takes a long time before a local 
government unit (LGU) receives its portion of the proceeds of the excise taxes, 
which has to be disbursed from the national government coffers. Due to this, LGUs 
have a difficult time financing their developmental projects that purport to advance 
the local economy. 
This bill seeks to provide a remedy by mandating the corporations or any 
group, private or public, engaging in the utilization and development of the national 
wealth within the area, to directly remit to the concerned LGU its forty percent 
(40%) share from the national wealth taxes. Under this proposed system, the 
proceeds due to the LGUs shall no longer pass through the Department of Budget 
and Management, which is usually the cause of delay. 
Through this measure, LGUs will be able to immediately act on their projects. 
This will help improve their investment climate and thereby provide an impetus to 
the growth of their economy. 
In view of the foregoing, the passage of this bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SEN Aff19 
S.B. No. 
. 
iO 
,JUL 13 P4 :12 
! 
IiA':flvEO FW:~ 
Introduced by Senator Loren Legarda 
AN ACT 
PROVIDING FOR THE DIRECT REMITTANCE TO THE HOST LOCAL 
GOVERNMENT UNIT OF ITS FORTY PERCENT (40%) SHARE OF THE GROSS 
COLLECTION DERIVED BY THE NATIONAL GOVERNMENT FROM 
NATIONAL WEALTH TAXES, AMENDING FOR THE PURPOSE SECTION 293 
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: 
1 
SECTION 1. Section 293 of Republic Act No. 7160, otherwise known as the 
2 
Local Government Code of 1991, is hereby amended to read as follows: 
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4 
"SECTION 293. Remittance of the Share of Local Government 
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Units. -
The share of local government units from the utilization and 
6 
development of national wealth shall be remitted in accordance with 
7 
Section 286 of this Code: Provided, however, That ANY PERSON, 
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NATURAL OR JURIDICAL, INCLUDING [ in the case of any ] 
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government agency or government-owned or -controlled corporation 
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engaged in the utilization and development of the national wealth, [ 
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such share ] shall [ be ] directly remit[ted] to the provincial, city, 
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municipal or barangay treasurer, AS THE CASE MAY BE, OF THE 
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HOST LOCAL GOVERNMENT UNIT concerned ITS FORTY 
14 
PERCENT (40%) SHARE DERIVED FROM NATIONAL WEALTH 
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TAXES UNDER SECTION 290 OF THIS CODE AND THE 
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REMAINING SIXTY 
PERCENT 
(60%) 
TO THE 
NATIONAL 
17 
GOVERNMENT [within five (5) days after the end of each quarter]." 
18 
1 


I 
SECTION 2. Repealing Clause. - All laws, decrees, executive orders, letters of 
2 
instructions, rules and regulations or parts thereof which are inconsistent with this 
3 
Act are hereby repealed, amended or modified accordingly. 
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SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days following 
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its publication in two (2) newspapers of general circulation. 
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8 
Approved, 
2