GPH Peace Panel visits Marawi, presents Framework Agreement’s annex on wealth sharing

From the Philippine Information Agency (Aug 6): GPH Peace Panel visits Marawi, presents Framework Agreement’s annex on wealth sharing

Members of the Government of the Philippines (GPH) Peace Panel presented the highlights of the Annex on Revenue Generation and Wealth Sharing of the Framework Agreement on the Bangsamoro in a briefing on the updates of the GPH -Moro Islamic Liberation Front peace talks held here on Monday.

The Annex deals on the powers of the new political entity in terms of generating revenue as well as saving the wealth coming from the natural resources in its territorial jurisdiction, GPH Panel Member and Former Agriculture Secretary Senen Bacani told participants of the briefing.

Bacani said the revenue generation, wealth sharing, and matters relating to fiscal administration are the main components of the Annex.

"Political autonomy can be more meaningful when accompanied by fiscal autonomy thus it is important that the needs of the Bangsamoro entity will be addressed in terms of necessary resources that will be given to them," he explained.

Accordingly, Bangsamoro communities are among the underdeveloped in the country due to decades-long armed conflict and the measures provided in the Annex will help bridge the financial gap so that Bangsamoro can catch-up with the more progressive areas of the country.

Under the Annex, the Bangsamoro shall have the power to levy donor’s tax, estate tax, documentary stamp tax and capital gains tax where all taxable elements are within the Bangsamoro jurisdiction in addition to the taxing powers already devolved to the Autonomous Region in Muslim Mindanao.

The Bangsamoro shall also have the power to levy different fees and charges for transaction that will have with its constituents and it may receive grants from donors. 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.

Moreover, the Bangsamoro shall have the power to contract loans or other forms of indebtedness by itself except for loans requiring sovereign guaranty which will require the approval of central government, Bacani said.

Bacani further said that national taxes, fees and charges collected by the central government within the Bangsamoro will be shared 75 percent to the Bangsamoro and 25 percent to the central government.

"In terms of sharing of income from exploration, development and utilization of natural resources, we have agreed on the following: 100 percent to the Bangsamoro for non-metallic resources such as sand, gravel and quarry resources; 75 percent to Bangsamoro and 25 percent to central government for metallic minerals; and equal sharing for fossil fuels and uranium," he added.

Bacani said one of the important sections of the Annex is the provision of block grants through automatic appropriation and regular release of the fund to the Bangsamoro government based on a formula that will be provided in the Basic Law.

The Annex also provides for the deductions of revenues from additional taxes beyond those devolved to the ARMM and the Bangsamoro share in revenues derived from natural resources from the annual block grant.

This provision came from the MILF showing their desire to be less dependent from the central government’s support, Bacani further said.

The Annex on Revenue Generation and Wealth Sharing is one of the four annexes that together with the Framework Agreement on Bangsamoro will complete the comprehensive agreement. The said Annex was signed by the GPH-MILF Peace Panels last July 13, 2013 in Kuala Lumpur, Malaysia.

http://www.pia.gov.ph/news/index.php?article=1521375751602