Budget Sec. Florencio Abad has finally approved the release of P85 million to the city government representing its shares from the operations of locators at the Philippine Export Zone Authority (PEZA).

Rep. Bernardo Vergara reported that Abad issued a memorandum to DBM Cordillera office dated Sept. 4 ordering the processing of the special allotment release order for the amount, including the corresponding notice of cash allocation and funding check to cover the release of the city’s tax shares.

Vergara added Abad has also directed the DBM-CAR to furnish him through the Budget and Management Bureau with copies of the release document for monitoring purposes.

The P85M is the share of Baguio from the gross income taxes paid from 1995 to 2002 by all businesses and enterprises within the Baguio City Export Processing Zone pursuant to Republic Act 7916 or Special Economic Zone Act.

The certification of the Bureau of Internal Revenue dated Sept. 11, 2003 indicated that the two percent share of the city for the period 1996 to 2002 was P85, 543,424.56.

The good news for the city came almost two months after President Benigno Aquino III announced the national government has set aside almost P1.8 billion from the national fund to pay the unpaid shares of local government units.

Vergara, meanwhile, said the proposed house bill urging for direct remittance to the host government units of their 40 percent shares from the gross collection derived from the national wealth tax is currently being pushed both in the Lower House and the Senate.

Domogan, during his term as congressman, also pushed for direct remittance of the tax shares of host local government units.