Article 86p. 86

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

Provided, however, That where the natural resources

are located in two (2) or more cities, the allocation of

shares shall be based on the formula on population

and land area as specified in subsection (C)(1) hereof.

SEC. 288. Disposition of Incremental Revenues. -

(A) Incremental Revenues from Republic Act No. 7660.

- The incremental revenues from the increase in the

documentary stamp taxes under R.A. No. 7660 shall be

set aside for the following purposes:

(1)

In 1994 and 1995, twenty five percent (25%)

thereof respectively, shall accrue to the Unified

Home-Lending Program under Executive Order No.

90 particularly for mass-socialized housing program

to be allocated as follows: fifty percent (50%) for

mass-socialized housing; thirty percent (30%) for the

community mortgage program; and twenty percent

(20%) for land banking and development to be

administered by the National Housing Authority:

Provided, That not more than one percent (1%) of the

respective

allocations

hereof

shall

be

used

for

administrative expenses;

(2)

In 1996, twenty five percent (25%) thereof to be

utilized for the National Health Insurance Program

that hereafter may be mandated by law;

(3)

In 1994 and every year thereafter, twenty five

percent (25%) thereof shall accrue to a Special

Education

Fund

to

be

administered

by

the

Department of Education, Culture and Sports for the

construction and repair of school facilities, training

of

teachers,

and procurement or production of

instructional materials and teaching aids; and

(4)

In 1994 and every year thereafter, fifty percent

(50%) thereof shall accrue to a Special Infrastructure

Fund for the Construction and repair of roads,

bridges,

dams

and

irrigation,

seaports

and

hydroelectric and other indigenous power projects:

Provided, however, That for the years 1994 and 1995,

thirty percent (30%), and for the years 1996, 1997 and

1998, twenty percent (20%), of this fund shall be

allocated for depressed provinces as declared by the

President as of the time of the effectivity of R.A. No.

7660: Provided, further, That availments under this

fund shall be determined by the President on the

basis of equity.

Provided, finally, That in paragraphs (2), (3), and (4) of this

Section, not more one percent (1%) of the allocated funds

thereof shall be used for administrative expenses by the

implementing agencies.

(B) Incremental Revenues from Republic Act No. 8240.

-

Fifteen

percent

(15%)

of

the

incremental

revenue

collected from the excise tax on tobacco products under

R. A. No. 8240 shall be allocated and divided among the

provinces

producing

burley

and

native

tobacco

in

accordance with the volume of tobacco leaf production.

The fund shall be exclusively utilized for programs to

promote economically viable alternatives for tobacco

farmers and workers such as:

(1)

Programs that will provide inputs, training, and

other support for tobacco farmers who shift to

production

of

agricultural

products

other

than

tobacco including, but not limited to, high-value

crops,

spices,

rice,

corn,

sugarcane,

coconut,

livestock and fisheries;

(2)

Programs that will provide financial support for

tobacco farmers who are displaced or who cease to

produce tobacco;

(3)

Cooperative programs to assist tobacco farmers

in planting alternative crops or implementing other

livelihood projects;

(4)

Livelihood programs and projects that will

promote,

enhance,

and

develop

the

tourism

potential of tobacco-growing provinces;

(5)

Infrastructure projects such as farm to market

roads, schools, hospitals, and rural health facilities;

and

(6) Agro-industrial projects that will enable tobacco

farmers to be involved in the management and

subsequent

ownership

of

projects,

such

as

post-harvest and secondary processing like cigarette

manufacturing and by-product utilization.

The

Department

of

Budget

and

Management,

in

consultation with the Department of Agriculture, shall

issue rules and regulations governing the allocation and

disbursement of this fund, not later than one hundred

eighty (180) days from the effectivity of this Act.

(C)

Incremental Revenues from the Excise Tax on

Alcohol and Tobacco Products. -

After deducting the allocations under Republic Act Nos.

7171 and 8240, eighty percent (80%) of the remaining

balance of the incremental revenue derived from this Act

shall be allocated for the universal health care under the

National Health Insurance Program, the attainment of

the millennium development goals and health awareness

programs; and twenty percent (20%) shall be allocated

nationwide, based on political and district subdivisions,

for medical assistance and health enhancement facilities

program, the annual requirements of which shall be

determined by the Department of Health (DOH).

(D)

Incremental Revenue from the Value-Added Tax -

Fifty percent (50%) of the Local Government unit's share

from the incremental revenue from the Value-Added Tax

shall be allocated and used exclusively for the following

purposes:

(1)

Fifteen percent (15%) for public elementary and

secondary education to finance the construction of

buildings,

purchases

of

school

furniture

and

in-service teacher trainings;

(2) Ten percent (10%) for health insurance premiums

of enrolled indigents as a counterpart contribution

of the local government to sustain the universal

coverage of the National Health Insurance Program;

(3)

Fifteen

percent

(15%)

for

environmental

conservation to fully implement a comprehensive

national reforestation program; and

(4) Ten percent (10%) for agricultural modernization

to finance the construction of farm-to-market roads

and irrigation facilities.

Such allocations shall be segregated as separate trust

funds by the national treasury and shall be over and

above the annual appropriation for similar purposes.

(E)

The amount of Fifteen million pesos (P15, 000,000)

shall be allocated for a Public Information and Education

Program to be administered by the Bureau of Internal

Revenue,

explaining

clearly

to

businesses

their

registration, invoicing and reporting requirements under

the value-added tax rules. Such program should include

seminars and visits to taxpayers to familiarize them with

the

tax

and

the

development

and

publication

of

easy-to-read guides on the value-added tax.

(F) Incremental Revenues from the Tax Reform for

Acceleration and Inclusion (TRAIN). — For five (5) years

from the effectivity of this Act, the yearly incremental

revenues generated shall be automatically appropriated

as follows:

(1)

Not

more

than

seventy

percent

(70%)

to

fund

infrastructure projects such as, but not limited to, the

Build, Build, Build Program and provide infrastructure

programs to address congestion through mass transport

and new road networks, military infrastructure, sports

facilities for public schools, and potable drinking water

supply in all public places; and

(2) Not more than thirty percent (30%) to fund:

(a) Programs under Republic Act No. 10659, otherwise

known as 'Sugarcane Industry Development Act of

2015,' to advance the self-reliance of sugar farmers

© Compiled by RGL

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