Press Release
August 15, 2009


Senator Edgardo J. Angara is calling for automatic retention of half of barangays' share in community tax so their officials can maximize funds for their projects and initiatives.

This bill seeks to amend and clarify some provisions of the Local Government Code of 1991, which provides that barangays are entitled to a share of up to fifty percent (50%) of its community tax collection. However, while the said provison provides that the share of the national government from the community tax collection shall remitted by the city or municipality concerned within 10 days after the end of each quarter, it is silent as to when the barangay shall receive its share.

"Although the Local Government Code has generous provisions identifying the sources of revenue for the barangays, some of these, however, are vague as to when the barangays shall enjoy the same," said Angara, Chair of the Senate Committee on Finance.

Barangays are mandated to perform certain duties and functions; and mandated to be self-reliant, required to raise its own revenue so that it can efficiently and effectively provide and delivers the basic services and facilities to its inhabitants.

In practice, the city or municipality concerned releases to the barangay its share only when the latter asks for it. Lamentably, Angara says, "in most cases the release takes a long time, thereby causing delays in the rendition of basic services to the constituents. Meanwhile, the city or municipality deposits the share of the barangay with its depository bank under a time deposit account and enjoy the interest accruing thereto.

Senate Bill 908 seeks to rectify this impeding situation for barangays by amending the Code to the effect that the barangay treasurer retain their 50% share in the community tax collected and remit the share of the city or municality within ten 10 days after the end of each month.

The municipal treasurer shall deputize the barangay treasurer to collect the community tax in their respective jurisdictions. Proceeds of the community tax actually and directly collected by the city or municipal treasurer shall accrue entirely to the general municipal fund. Proceeds of community tax collected through the barangay treasurers shall be apportioned as follows:

  • 50% to the general fund of the city or municipality concerned; and

  • 50% to the barangay where tax is collected.

"It is important that barangay officials are able to expeditedly utilize their funds so basic projects for the welfare and security of thier constituents are ensured," ended Angara.

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