SBMA releases P65.6-M in LGU shares for 1st semester
SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) has released revenue shares totalling P65.6 million to contiguous and affected local government units (LGUs) in the first semester of this year.
SBMA administrator and CEO Armand Arreza said the immediate release of the LGU share was made possible under the new tax collection scheme implemented since August 2010, which allowed the SBMA, instead of the Bureau of Internal Revenue (BIR), to directly collect two per cent of the corporate tax paid by business locators in this free port.
“This is the second time that we have facilitated the immediate release of revenue share to the adjacent LGUs,” Arreza noted.
“Through these shares, we hope to help the LGUs execute development projects in return for their contribution of manpower and other resources that help a lot in the success of the Subic Bay Freeport,” Arreza added.
According to the SBMA Treasury Department, Olongapo City received a total of P16.75 million for its revenue share in the first half of 2011; while Subic, Zambales received P9.28 million; Dinalupihan, Bataan, P8.19 million; San Marcelino, Zambales, P7.87 million; Hermosa, Bataan, P6.59 million; Morong, Bataan, P5.78 million; San Antonio, Zambales, P5.77 million; and Castillejos, Zambales, P5.41 million.
Arreza said that under the new tax collection scheme, the SBMA would be releasing the LGU shares twice a year. The first release under the new scheme was made last February for LGU shares for the second semester of 2010.
The LGU share is derived from the five per cent corporate taxes the SBMA collects from firms operating in the Subic Bay Freeport and Special Economic Zone (SBFSEZ).
Arreza explained that the new tax collection scheme facilitated the release of shares to LGUs, which are classified as either “contiguous” or “affected” under Republic Act No. 7227, which created the SBFSEZ.
He also said that more than 500,000 residents of the seven adjacent municipalities and city benefit from these LGU shares.
The LGU share is divided according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).
SBMA records indicate that revenue share generated during the first semester of 2011 reached P72.92 million.
The SBMA said that after releasing the P65.6 million, it would retain the remaining P9.29 million "to take care of any possible tax refunds.” The same amount would only be released to the LGUs after the prescriptive period of two years lapsed and upon audit of the BIR, it added.
The LGU share is intended to help finance development projects, provide for basic support services in health, education, and peace and order, and other livelihood programs to improve living conditions, public health standards and the urban environment.
Arreza said that a total of P121.56 million in revenue shares have already been released to contiguous and affected LGUs since the implementation of the new collection scheme.
The next release of LGU shares to cover the second semester of 2011 would be on February 1, 2012, Arreza added. (30)