MANILA, Apr. 14 — The Department of Budget and Management (DBM) announced the release of the 40-percent share of Local Government Units (LGUs) from mining taxes in the amount of P233.8 million. The amount pertains to the LGU share from excise taxes collected from the mining industry between December 2011 and the fourth quarter of 2014.
“We have issued the allotment and corresponding cash allocation for the release of the lawful share of LGUs in the proceeds from the utilization and development of minerals in their respective areas,” DBM Secretary Florencio B. Abad said. “The funds are now released based on the Joint Certification of mining tax collections issued by the Bureau of Internal Revenue and the Treasury, as well as the schedule of the corresponding shares of recipient LGUs.”
Abad said the funds released are charged against the P1.5 billion appropriated for the purpose in the current year’s National Budget.
The total collection from December 2011 to the fourth quarter of 2014 amounted to P585 million. He added that the funds shall be directly credited to the accounts of the recipient provinces, municipalities and barangays.
CARAGA Region received the largest share in the amount of P100.5 million. CARAGA hosts several mining projects producing various mineral commodities including gold, copper, chrome, nickel, iron, and limestone.
The other regions with large shares include Region VII with P29.2 million, Region II with P27.3 million, Region IV-B with P22.2 million, and CAR with P21.7 million.
The regions with the lowest shares are Regions XI and VI with shares in the amount of P52,440 and P95,300.76, respectively.
The Local Government Code mandates that in addition to the Internal Revenue Allotment, LGUs have a share of forty percent of the gross collection derived by the national government from the preceding fiscal year from the utilization and development of the national wealth within their territorial jurisdiction. These include mining taxes, royalties, forestry, and fishery charges.
The proceeds from the share of LGUs shall be appropriated by their respective Sanggunian to finance local government and livelihood projects. (DBM)
