NITTY GRITTY | Highlights of the Govt-MILF revenue generation, wealth-sharing annex

From InterAksyon (Jul 14): NITTY GRITTY | Highlights of the Govt-MILF revenue generation, wealth-sharing annex



Chief government negotiator Miriam Coronel Ferrer and MILF chairman al-haj Murad lead the signing of the revenue generation and wealth-sharing annex late Saturday, July 13 in KL. OPAPP-AFP

The government and the MILF released a joint statement Sunday hailing the successful conclusion of occasionally tense negotiations on revenue generation and wealth sharing between the State and the Bangsamoro, one of three sticky areas in the negotiations leading to a comprehensive agreement.

HERE ARE THE HIGHLIGHTS OF THE ANNEX ON REVENUE GENERATION AND WEALTH SHARING:

• Annex on Revenue Generation and Wealth-sharing seeks to fulfill the aspirations for meaningful autonomy for Muslim Mindanao as envisioned in the Constitution and correct the flaws in the current fiscal system in the ARMM.

• The Annex, which forms part of the Framework Agreement on the Bangsamoro (FAB), will provide sufficient guidance for the crafting of the Bangsamoro Basic Law's provisions on wealth-sharing and revenue generation for the Bangsamoro as envisioned by the FAB. Wealth creation (or revenue creation and sourcing) is deemed “important for the operation of the Bangsamoro, considering that the Bangsamoro territory is among the most underdeveloped in the Philippines due to the decades-old conflict. Moreover, the existing tax base therein is very limited.”

• The eight-page wealth-sharing annex has sections on taxation, other sources of revenue, fees and charges, grants and donations, fund transfers from Central Government, contracting of loans and overseas development assistance, natural resources, additional fiscal powers, among others.

• One of the highlights is the agreed sharing formula on taxing powers. The panels agreed that 25 percent of the “Central Government taxes, fees and charges collected in the Bangsamoro, other than tariff and custom duties” will go to the Central Government, while 75 percent of it, including the shares of the local government units, will go to the Bangsamoro Government.

• On other sources of revenue, government income derived from the operations of Bangsamoro government-owned and -controlled corporations, financial institutions, economic zones, and freeports operating therein, shall go to the Bangsamoro Government.

• The Bangsamoro shall have authority and control over existing government owned and -controlled corporations and financial institutions operating exclusively in the Bangsamoro territory, after determination by the intergovernmental fiscal policy board of its feasibility.

• On fund transfers from Central Government, a Special Development Fund will be provided by the former to the Bangsamoro for rehabilitation and development purposes upon the ratification of the Bangsamoro Basic Law.

• When it comes to natural resources, 75 percent of income derived from exploration, development and utilization of metallic minerals within the region will go to the Bangsamoro Government. With respect to non-metallic minerals (sand, gravel, and quarry resources), such revenues will go to the Bangsamoro government and its local government units.

• Income derived from fossil fuels (petroleum, natural gas, and coal) and uranium will be shared equally between the Central and Bangsamoro Governments.

http://www.interaksyon.com/article/66330/nitty-gritty--highlights-of-the-govt-milf-revenue-generation-wealth-sharing-annex