05/02/2020 R.A. 6766 capital investment or capital stocks directly controlled or owned by Filipinos who are preferably residents of the region. Section 8. Small-scale mining shall receive support from and be regulated by the Autonomous Region, taking into consideration ecological balance and the interest of the communities where such operations are conducted. Section 9. The Regional Government shall actively and immediately pursue reforestation measures to ensure that at least fifty percent (50%) of the land surface of the Autonomous Region shall be covered with trees, giving priority to land strips along the edges of rivers and streams and shorelines of lakes. The Regional Government shall adopt measures for the development of lands eighteen percent (18%) in slope or over by providing infrastructure, financial and technical support to upland communities especially the tribal peoples. Section 10. There is hereby created a Regional Planning and Development Board which shall be composed of the Cordillera Governor as ex officio Chairman, all the provincial governors and city mayors or their representatives, two (2) Members of the Cordillera Assembly to be designated by the Speaker, and such other members to represent the private sector as may be prescribed by the Assembly. The Board shall serve as the planning, monitoring and coordinating agency for the Autonomous Region. It shall identify, evaluate, recommend and submit the annual work programs and comprehensive development plans to the Cordillera Governor for proper implementation. Section 11. The Regional Government shall establish and capitalize a Regional Development Bank which shall administer its own funds. The bank shall be under the supervision of the Central Bank. Section 12. The Regional Government shall, in coordination with the National Government, plan, construct and maintain a system of roads interconnecting the various areas of the region to other regions adjacent to the Cordilleras and shall establish a region wide telecommunications system to enable all municipalities within the region to be equipped with telephone, telegraph or radio facilities. Section 13. Subject to ecological considerations, the Regional Government shall adopt and implement a comprehensive urban land reform and land use program consistent with the Constitution and national and regional laws and policies to ensure the just utilization of land within their jurisdiction. ARTICLE XIII Fiscal Autonomy Section 1. The Regional Government shall have the power to create its own sources of revenues and to levy taxes, fees and charges, subject to such guidelines and limitations as the Constitution and this Act may provide, consistent with the basic policy of local autonomy. Such taxes, fees and charges shall accrue exclusively to the Autonomous Region. Section 2. In enacting revenue-raising measures, the Cordillera Assembly shall observe the principle of uniformity and equity in taxation and shall not impose confiscatory taxes or fees of any kind. Income taxation, however, shall be solely the concern and prerogative of the National Government. The Cordillera Assembly shall not revoke or amend, directly or indirectly, any city or municipal ordinance imposing any tax or fee on purely local business. No tax, impost or assessment shall be imposed or charged upon goods or merchandise coming into, going out of, or passing through the Autonomous Region to other places of the Philippines, and vice versa. Section 3. All corporations, partnerships, and other business entities directly engaged in business in the Autonomous Region shall pay through the Regional Government that portion of their annual income tax corresponding to the net income generated from business done in the area of autonomy. All corporations, partnerships or business entities directly engaged in business in the Autonomous Region shall pay their corresponding taxes, fees and charges in the province, city, or municipality where the establishment is doing business regardless of the location of their principal or main offices. Section 4. The sources of revenues of the Autonomous Region shall include, but are not limited to, the following: (a) Taxes, except income taxes, imposed by the Regional Government; (b) Fees and charges imposed by the Regional Government; (c) Appropriations, internal revenue allotment and other budgetary aids from the National Government; (d) Shares in revenues generated from the operations of public utilities within the Autonomous Region; and (e) Block grants derived from economic agreements or conventions authorized by the Autonomous Region, donations, endowments, foreign assistance, and other forms of aid, subject to the Constitution and national policies. Section 5. The total collections of a province or city from national internal revenue taxes, fees and charges as well as taxes, fees and charges imposed on natural resources accruing as income to the National Government, shall be distributed as follows: (a) Thirty percent (30%) to the province or city; (b) Thirty percent (30%) share to the Regional Government; and (c) Forty percent (40%) to the National Government. The thirty percent (30%) share of the province shall be distributed equally as follows: ten percent (10%) to the province, ten percent (10%) to the municipality and ten percent (10%) to the barangay. The thirty percent (30%) share of the city shall be distributed as follows: twenty percent (20%) to the city and ten percent (10%) to the barangay. The province or city concerned shall automatically retain its share and remit the seventy percent (70%) to the Regional Government, which shall, after deducting its share, remit the balance to the National Government on a monthly basis. The remittance procedure within the Autonomous Region shall be in accordance with the rules and regulations promulgated by the Regional Government, and remittances to the National Government, by the rules and regulations promulgated by the Department of Finance. Section 6. Subject to the Constitution and national policies, the Regional Government shall evolve a system of economic agreements or trade compacts to generate block grants for regional investments and improvements of regional economic structures. These economic agreements shall be authorized by regional legislation or by executive agreement. Pursuant to specific recommendations from the Regional Planning and Development Board, https://www.lawphil.net/statutes/repacts/ra1989/ra_6766_1989.html 9/14