TITLE XIALLOTMENT
OF INTERNAL REVENUECHAPTER IISPECIAL
DISPOSITION
OF CERTAIN NATIONAL INTERNAL REVENUE TAXES
SEC.
286. Disposition of Proceeds of insurance Premium Tax. -Twenty-five percent (25%) of the premium tax collected under
Section
123 of this Code shall accrue to the Insurance Fund as contemplated in
Section 418 of Presidential Decree No. 612 which shall be used for the
purpose of defraying the expenses of the Insurance Commission. The
Commissioner
shall turn over and deliver the said Insurance Fund to the Insurance
Commissioner
as soon as the collection is made.
SEC.
287. Shares of Local Government Units in the Proceeds from the
Development
and Utilization of the National Wealth. -
Local Government units shall have an equitable share in the proceeds
derived
from the utilization and development of the national wealth, within
their
respective areas, including sharing the same with the inhabitants by
way
of direct benefits.cralaw:red
(A) 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%) of the gross collection derived by
the national government from the preceding fiscal year from excise
taxes
on mineral products, royalties, 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.cralaw:red
(B) Share of the
Local Governments from Any Government Agency or Government-Owned
or
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:
(1) One percent (1%)
of the gross sales or receipts of the preceding calendar year, or
(2) Forty percent
(40%)
of the excise taxes on mineral products, royalties, and such othertaxes, fees or charges, including related surcharges, interests or
fines
the governmentagency or government-owned or -controlled corporations would have paid
if it werenot otherwise exempt.
(C) Allocation of
Shares. -
The share in the preceding Section shall be distributed in the
following
manner:
(1) Where the natural
resources are located in the province:
(a) Province -
twenty
percent (20%)
(b) Component
city/municipality
- forty-five percent (45%); and
(c) Barangay -
thirty-five
percent (35%)
Provided, however,
That where the natural resources are located in two (2) or more cities,
the allocation of shares shall be based on the formula on population
and
land area as specified in subsection (C)(1) hereof.
(2) Where the natural
resources are located in a highly urbanized or independent component
city:
(a) City - sixty -
five percent (65%); and
(b) Barangay -
thirty
- five percent (35%)
Provided, however, That
where the natural resources are located in two (2) or more cities, the
allocation of shares shall be based on the formula on population and
land
area as specified in subsection (c)(1) hereof.
SEC.
288. Disposition of Incremental Revenues. -
(A) Incremental
Revenues from Republic Act No. 7660. -
The incremental revenues from the increase in the documentary stamp
taxes
under R.A. No. 7660 shall be set aside for the following purposes:
(1) In 1994 and 1995,
twenty five percent (25%) thereof respectively, shall accrue to theUnified Home-Lending Program under Executive Order No. 90 particularly
for masssocialized housing program to be allocated as follows: fifty percent
(50%)
formass-socialized housing; thirty percent (30%) for the community
mortgage
program;and twenty percent (20%) for land banking and development to be
administered
bythe National Housing Authority: Provided, That no more than one percent
(1%) ofthe respective allocations hereof shall be used for administrative
expenses;
(2) In 1996, twenty
five percent (25%) thereof to be utilized for the National HealthInsurance Program that hereafter may be mandated by law;
(3) In 1994 and every
year thereafter, twenty five percent (25%) thereof shall accrue toa Special Education Fund to be Administered by the Department of
Education,
Cultureand Sports for the construction and repair of school facilities,
training
or teachers,and procurement or production of instructional materials and teaching
aids;
and
(4) In 1994 and every
year thereafter, fifty percent (50%) thereof shall accrue to aSpecial Infrastructure Fund for the Construction and repair of roads,
bridges,
damsand irrigation, seaports and hydroelectric and other indigenous power
projects:however, That for the years 1994 and 1995, thirty
percent
(30%), and forthe years 1996, 1997 and 1998, twenty percent (20%), of this fund shall
be allocatedfor depressed provinces as declared by the President as of the time of
the effectivityof R. A. No. 7660: Provided, further, That availments under
this
fund shall bedetermined by the President on the basis of equity.
Provided, finally,
That in paragraphs (2), (3), and (4) of this Section, not more one
percent
(1%) of the allocated funds thereof shall be used for administrative
expenses
by the implementing agencies.
(B) Incremental
Revenues from Republic Act No. 8240. -
Fifteen percent (15%) of the incremental revenue collected from the
excise
tax on tobacco products under R. A. No. 8240 shall be allocated and
divided
among the provinces producing burley and native tobacco in accordance
with
the volume of tobacco leaf production. The fund shall be exclusively
utilized
for programs in pursuit of the following objectives:
(1) Cooperative
projects
that will enhance better quality of agricultural products andincrease income and productivity of farmers;
(2) Livelihood
projects,
particularly the development of alternative farming system toenhance farmer's income; and
(3) Agro-industrial
projects that will enable tobacco farmers to be involved in the
managementand subsequent ownership of projects, such as post-harvest and
secondary
processinglike cigarette manufacturing and by-product utilization.
The Department of Budget
and Management, in consultation with the Oversight Committee created
under
said R.A. No. 8240, shall issue the corresponding rules and regulations
governing the allocation and disbursement of this fund.
SEC.
289. Special Financial Support to Beneficiary Provinces Producing
Virginia
Tobacco. -
The financial support given by the National Government for the
beneficiary
provinces shall be constituted and collected from the proceeds of
fifteen
percent (15%) of the excise taxes on locally manufactured Virginia-type
of cigarettes.
The funds allotted shall
be divided among the beneficiary provinces pro-rata according
to
the volume of Virginia tobacco production.cralaw:red
Production producing
Virginia tobacco shall be the beneficiary provinces under Republic Act
No. 7171. Provided, however, that to qualify as beneficiary
under
R. A. No. 7171, a province must have an average annual production of
Virginia
leaf tobacco in an amount not less than one million kilos: Provided,
further, that the Department of Budget and Management (DBM) shall
each
year determine the beneficiary provinces and their computed share of
the
funds under R. A. No. 7171, referring to the National Tobacco
Administration
(NTA) records of tobacco acceptances, at the tobacco trading centers
for
the immediate past year.cralaw:red
The Secretary of Budget
and Management is hereby directed to retain annually the said funds
equivalent
to fifteen percent (15%) of excise taxes on locally manufactured
Virginia
type cigarettes to be remitted to the beneficiary provinces qualified
under
R. A. No. 7171.cralaw:red
The provision of existing
laws to the contrary notwithstanding, the fifteen percent (15%) share
from
government revenues mentioned in R. A. No. 7171 and due to the Virginia
tobacco-producing provinces shall be directly remitted to the provinces
concerned.cralaw:red
Provided, That
this Section shall be implemented in accordance with the guidelines of
Memorandum Circular No. 61-A dated November 28, 1993, which amended
Memorandum
Circular No. 61, entitled "Prescribing Guidelines for Implementing
Republic
Act No. 7171", dated January 1, 1992.
Provided, further,
That in addition to the local government units mentioned in the above
circular,
the concerned officials in the province shall be consulted as regards
the
identification of projects to be financed.