LGU share of 2019 mining, energy revenue falls to P3.3B

LOCAL GOVERNMENT units (LGUs) received a combined P3.347 billion from their share of the national resource wealth in the form of 2019 taxes on mines and energy producers in 2019, the Department of Budget and Management (DBM) said.

The DBM said on its website that the LGU share fell 12.4% from the preceding year’s collections.

Some 53.33% or P1.785 billion released to LGUs were generated via revenue generated by the Department of Energy from energy resources; P1.562 billion were from mining taxes collected by the Bureau of Internal Revenue. Forestry charges yielded P125,169.

Under the Local Government Code, LGUs are to receive 40% of National Government revenue from resource wealth extracted within the LGUs’ territory, on top of their share from national taxes.

Eligible for distribution are mining taxes, royalties, forestry and fishery charges, as well as other applicable taxes, fees and charges.

LGUs are authorized to use the proceeds generated from resource wealth to fund development and livelihood projects. For revenue generated via hydrothermal, geothermal and other sources of energy, 80% should be used solely on projects that will bring down electricity costs in their territory.

Region VI received P1.694 billion from the distribution, followed by Region XIII with P554.8 million; Region VII P293.6 million; Region V P275.62 million, and Cordillera Administrative Region P147.752 million.

Antique received the biggest share among all provinces with P311 million. — Beatrice M. Laforga

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