Commonwealth Act No. 375, enacted on August 23, 1938, amends Commonwealth Act No. 241 to provide financial compensation to various government subdivisions for revenue losses due to the abolition of the cedula tax. It appropriates a total of five million nine hundred fifty thousand pesos from the National Treasury to be distributed by the Secretary of Finance based on the 1937 cedula tax revenue shares. The act aims to ensure that provinces, subprovinces, chartered cities, municipalities, and municipal districts receive adequate financial support following the tax's removal. The amendment took effect on January 1, 1938.
August 23, 1938
COMMONWEALTH ACT NO. 375
AN ACT TO AMEND SECTION ONE OF COMMONWEALTH ACT NUMBERED TWO HUNDRED AND FORTY-ONE, ENTITLED "AN ACT TO APPROPRIATE FIVE MILLION PESOS TO BE DISTRIBUTED BY THE SECRETARY OF FINANCE AMONG THE PROVINCES, SUBPROVINCES, CHARTERED CITIES, MUNICIPALITIES, AND MUNICIPAL DISTRICTS ON THE BASIS OF THE YEARLY AVERAGE OF THEIR SHARES IN THE PROCEEDS OF THE CEDULA TAX COLLECTED DURING THE YEARS NINETEEN HUNDRED AND THIRTY-THREE, NINETEEN HUNDRED AND THIRTY-FOUR, NINETEEN HUNDRED AND THIRTY-FIVE, NINETEEN HUNDRED AND THIRTY-SIX, AND NINETEEN HUNDRED AND THIRTY-SEVEN, TO COMPENSATE THE SAID BRANCHES OF THE GOVERNMENT FOR THE LOSS FROM THEIR REVENUES ON ACCOUNT OF THE ABOLITION OF THE CEDULA TAX"
SECTION 1. Section one of Commonwealth Act Numbered Two hundred and forty-one is amended so as to read as follows:
"SECTION 1. In order to compensate the provinces, subprovinces, chartered cities, municipalities, and municipal districts for the loss which they may incur in their respective revenues on account of the abolition of the cedula tax, there is hereby appropriated, out of any funds in the National Treasury not otherwise appropriated, the sum of five million nine hundred fifty thousand pesos, or so much thereof as may be necessary, to be distributed by the Secretary of Finance, among the provinces, subprovinces, chartered cities, municipalities, and municipal districts on the basis of their shares in the proceeds of the cedula tax collected during the year nineteen hundred and thirty-seven."
SECTION 2. This Act shall take effect on January 1, 1938.
Approved: August 23, 1938