Section 11Sec./Art. 11

Share in the Proceeds from the Development and Utilization of the National Wealth. - As political subdivisions of the national government, the provinces of Palawan del Norte, Palawan Oriental, and Palawan del Sur shall be entitled to equitable shares in the proceeds of the utilization and development of the national wealth within.their respective terrestrial and maritime jurisdiction.

For the purpose of accelerating economic development arid upgrading the quality of life of the inhabitants, the provinces of Palawan del Norte, Palawan Oriental, and Palawan del Sur shall, in addition to the internal revenue allotment, have a combined share of not less than forty percent (40%) of the gross collection derived by the national government from the preceding fiscal year from the following:

(a) Mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interests, or fines, and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction;

(b) Administrative charges enumerated herein accruing to the national government whether collected by agencies of the national government or, in certain cases, by Palawan del Norte, Palawan Oriental, or Palawan del Sur;

(c) Share in the proceeds from the development and utilization of the national wealth which Palawan del Norte, Palawan Oriental, or Palawan del Sur actually collect and automatically retain its share of at least forty percent (40%) of such proceeds shall not form part of the revenue base in the computation of the forty percent (40%) share.

The provinces of Palawan del Norte, Palawan Oriental, and Palawan del Sur shall each have a share based on the preceding fiscal year from the proceeds derived by national government agencies (NGAs) or government-owned or -controlled corporations (GOCCs) engaged in the utilization and development of the national wealth based on the following formula, or whichever will produce a higher amount for the abovementioned provinces:

(1) One percent (1%) of the gross sales or receipts of the preceding calendar year; or

(2) Forty percent (40%) of the mining taxes, royalties, forestry and fishery charges and such other taxes, fees or charges, including related surcharges, interests, or fines the NGA or GOCC would have paid if it were not otherwise exempt.

The shares referred to in the preceding paragraphs shall be divided equally among the provinces of Palawan del Norte, Palawan Oriental, and Palawan del Sur and shall be automatically released to them. The share of each province shall further be divided in favor of municipalities and barangays, which shall also be automatically released, as follows:

(i) Province: sixty percent (60%);

(ii) Municipality: twenty-four percent (24%); and

(iii) Barangay: sixteen percent (16%).