Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

H.B-No._635

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

Consistent with the promotion and enhancement of local financial autonomy, this
bill seeks to amend Section 290 and 291 of Republic Act 7160, otherwise known as the
Local Government Code.

‘As proposed, the share of the local government units is increased to sixty
percent (60%) 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,

Under this legislative proposal, the 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 to them within ten (10) days after the end of every quarter
during the current fiscal year.

This is iust one of the measures that seeks to broaden the local fiscal resource
generation. Hence, the approval of this bill is earnestly requested.

RDO “St M. ANGARA,

Representative
Lone District, Province of Aurora



FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

H.B. No. 835

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
AMENDING SECTIONS 290 AND 291 OF REPUBLIC ACT 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 Government Units. — Local
government units shall, in addition to the internal revenue allotment, have a
share of (forty percent (40%)) SIXTY PERCENT (60%) 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 TAX PAYERS, 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.

SEC. 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%) 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.

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regulations, or parts thereof inconsistent herewith are hereby repealed or modified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

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

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

Approved,