The Budget Department said Wednesday it released P234 million to local government units as a part of their share from taxes collected by the government from the mining sector.
It said the amount represented the 40-percent share of LGUs 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,” Budget Secretary Florencio Abad said.
Proceeds from the share of LGUs shall be appropriated by their respective councils to finance local government and livelihood projects, he 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.
Abad said the funds released were charged against the P1.5 billion appropriated for the purpose in the current year’s national budget.
Total collection from December 2011 to the fourth quarter of 2014 reached P585 million. Abad said the funds would 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 various mineral commodities including gold, copper, chrome, nickel, iron and limestone.
The other regions with large shares were Region VII with P29.2 million, Region II with P27.3 million, Region IV-B with P22.2 million and Cordillera Administrative Region with P21.7 million.
The regions with the lowest shares are Regions XI and VI with P52,440 and P95,300.76, respectively.
The Local Government Code mandates that in addition to the internal revenue allotment, LGUs have a 40-percent share in the gross collection derived by the national government in 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.