Local governments hosting mining projects are set to receive a share in taxes collected by the national government from December 2011 to the fourth quarter of 2014, the Department of Budget and Management (DBM) said on Wednesday.
In a statement, the department said it released the 40-percent share of local governments from mining taxes amounting to P233.8 million.
The collection from December 2011 to the fourth quarter of 2014 totaled P585 million.
The Local Government Code mandates that in addition to the Internal Revenue Allotment, local governments are entitled to 40 percent of the gross collection by the national government from the preceding fiscal year from the utilization and development of the national wealth within their respective territorial jurisdictions.
These include mining taxes, royalties, forestry, and fishery charges.
“We have issued the allotment and corresponding cash allocation for the release of the lawful share of LGUs [local government units]in the proceeds from the utilization and development of minerals in their respective areas. 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,” Budget Secretary Florencio Abad said.
Abad noted the funds are charged against the P1.5 billion appropriated for the purpose in the current year’s national budget.
He said the funds shall be directly credited to the accounts of the recipient provinces, municipalities, and barangays.
CARAGA Region received the largest share of P100.5 million. CARAGA hosts several mining projects producing 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 proceeds from the share of LGUs shall be appropriated by their respective Sanggunian to finance local government and livelihood projects.