Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROVIDING FOR THE SHARE IN THE NATIONAL TAXES OF LOCAL GOVERNMENT 
UNITS, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE 
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
EXPLANATORY NOTE 
This legislation aims to provide and increase fiscal independence to the Local Government 
Units (LGUs) by providing an additional source of funds in the form of an increase in its share 
in the national taxes. 
The LGUs are the backbone of the government. They are at the forefront of pursuing national 
development and progress. They are the first responders in cases of disasters or calamities 
and they are also the prime movers of the executive mandate. 
Enshrined in the 1987 Constitution, Article X, Section 6 provides that "local government units 
shall have a just share, as determined by law, in the national taxes which shall be automatically 
released to them." 
An increase of fifty percent (50%) would mean more funding and resources at the grassroots 
level for infrastructure development, livelihood programs, and various social services.   
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September  14, 2022
8:18 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROVIDING FOR THE SHARE IN THE NATIONAL TAXES OF LOCAL GOVERNMENT 
UNITS, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE 
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Beginning the fiscal year following the effectivity of this Act, local government 
units shall have a fifty percent (50%) share in the national taxes based on the collection of 
the third fiscal year preceding the current fiscal year: Provided, that if the national government 
incurs an unmanageable public sector deficit, the President of the Philippines is hereby 
authorized, upon the recommendation of Secretary of Finance, Secretary of the Interior and 
Local Government, and Secretary of Budget and Management, and subject to consultation 
with the presiding officers of both Houses of Congress and the president of the various leagues 
of the local government units, to make the necessary adjustments in the share in the national 
taxes of local government units but in no case shall the share be less than forty percent (40%) 
of the collection of national taxes of the third fiscal year preceding the current fiscal year. 
SECTION 2. As used in this Act: 
(1) "Local Government Units" shall refer to provinces, cities, municipalities, and
barangays;
(2) "National Taxes" shall refer to and include the national internal revenue taxes collected
by the Bureau of Internal Revenue and the tariffs, duties, fees, and charges as well as
the national internal revenue taxes, if any collected by the Bureau of Customs;
(3) "National Internal Revenue Taxes" shall include the value-added tax;
SECTION 3. The share in the national taxes created under this Act of each local government 
unit shall be determined following the formula provided under Section 285 of the Republic 
Act. No. 7160. 
SECTION 4. Each local government unit shall appropriate in its annual budget no less than 
twenty percent (20%) of its share in the national taxes for development projects. Copies of 
the development plans of local government units shall be furnished to the Department of 
Interior and Local Government. 
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SECTION 5. The Secretary of Finance, in consultation with the Secretary of Budget and 
Management, shall promulgate the necessary rules and regulations for a simplified 
disbursement scheme designed for the speedy and effective enforcement of the provisions of 
this Act. 
 
SECTION 6. Section 284 under Chapter I, Title III of Republic Act No. 7160, and all laws, 
presidential decrees, executive orders, letters of instruction, rules, and regulations which are 
inconsistent with any of the provisions of this Act are hereby repealed or modified accordingly. 
 
SECTION 7. If, for any reason or reasons, any part or provision of this Act shall be held to 
be unconstitutional or invalid other parts or provisions hereof which are not affected thereby 
shall continue to be in full force and effect. 
 
SECTION 8. This Act shall take effect fifteen (15) days after its complete publication in the 
Official Gazette or any newspaper of general circulation. 
 
Approved,