SUBIC BAY FREEPORT—Revenue shares released by the Subic Bay Metropolitan Authority (SBMA) in the last eight years to neighboring local government units (LGUs) have reached P1.65 billion, reflecting a vibrant business atmosphere here and providing a gauge of how local communities could potentially develop with such a steady source of funds.
According to SBMA Chairman and Administrator Wilma T. Eisma, the Subic agency releases the LGU shares twice a year, with funds taken from the 5-percent corporate tax paid by business enterprises registered at the Subic Bay Freeport Zone.
Three percent of the corporate taxes are remitted to the national government, while 2 percent are retained by the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone.
“Since the SBMA began directly releasing the shares to LGUs in 2010, we have paid out a total of P1,649,947,885.13,” said Eisma, who distributed the latest LGU shares last week.
“The cumulative total places the amount of shares that each of the eight LGUs covered by the benefit received in the last eight years at an average of P206 million,” she added.
SBMA records indicated that, of the eight LGUs, Olongapo City has received the biggest chunk of shares at a total of P396.79 million in eight years.
The municipality of Subic, Zambales, followed at P246.42 million; Dinalupihan, Bataan, at P206.39 million; and San Marcelino, Zambales, at P198.89 million.
Meanwhile, Hermosa, Bataan, got P169.29 million; Castillejos, Zambales, P145.03 million; San Antonio, Zambales, P144.06 million; and Morong, Bataan, P143.05 million.
Under Republic Act 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, business enterprises within the Subic Freeport Zone only pay a 5-percent tax on their gross income earned within the zone.
Eisma said the SBMA began directly releasing the shares to LGUs in 2010, thus cutting the roundabout route of remitting the 5-percent tax to the National Treasury first, then having the Department of Budget Management release the 2-percent share to the LGUs concerned.
The latest release gave Olongapo a total of P34,356,210.73; Subic with P22,438,000.32; Dinalupihan with P18,317,950.71; San Marcelino with P17,652,452.62; Hermosa with P15,292,064.02; Castillejos with P13,656,489.21; Morong with P12,776,665.57; and San Antonio with P12,664,679.21.
Mayors of the beneficiary communities said the LGU shares are being treated as additional income, thus directly boosting the operations of the local government.
“This assistance from the SBMA is a big help for us, especially for the small municipalities like us who often struggle with our budget,” said Castillejos Mayor Jose Angelo Dominguez.
“So we have included the LGU shares in our annual budget projections, and these are used for various programs and projects for the community and residents,” he added.
Mayor Ma. Angela Garcia of Dinalupihan echoed the same sentiment, saying it was a good thing that the SBMA has this facility that regularly provides financial assistance to the LGUs.