BIR Ruling

September 12, 1968 Mr. Justiniano R. Pareja Municipal Secretary Veruela, Agusan S i r : This refers to Resolution No. 13, Series of 1968, of the Municipal Council of Veruela, Agusan, requesting this Office to enjoin the management of the del Rosario & Sons Enterprises to pay forest charges into the coffer of said municipality so that it may realize its share in the revenues as embodied in the Decentralization Law. In reply thereto, I have the honor to inform you that under existing law as implemented by Forest Regulation No. 85, forest charges may be paid either at the point of origin or destination of the forest products. Accordingly, the management of the del Rosario & Sons Enterprises may pay, at its option, forest charges at the municipality of Veruela or at the point of destination. At any rate, forest charges accrue to the National Treasury and are disposed of in accordance with the allotment law. A municipality is not, by the mere fact that forest charges are paid to or collected by it, entitled to a special share or allotment in such collections. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue