Question & AnswerQ&A (Commonwealth Act No. 241)
The primary purpose of Commonwealth Act No. 241 is to appropriate five million pesos to be distributed among the provinces, subprovinces, chartered cities, municipalities, and municipal districts to compensate them for the loss of revenues caused by the abolition of the cedula tax.
The Secretary of Finance is responsible for distributing the five million pesos among the provinces, subprovinces, chartered cities, municipalities, and municipal districts.
The funds will be distributed on the basis of the yearly average of their shares in the proceeds of the cedula tax collected during the years 1933 to 1937.
The amounts distributed to each province, subprovince, chartered city, municipality, or municipal district shall accrue to the respective provincial, subprovincial, city, or municipal funds where the proceeds of the cedula tax accrued before its abolition.
This Act took effect on January 1, 1938.
The abolition of the cedula tax prompted the creation of Commonwealth Act No. 241.
Yes, the Act specifies that the appropriation shall be out of any funds in the National Treasury not otherwise appropriated.
The cedula tax collections from the years 1933, 1934, 1935, 1936, and 1937 are considered.
Yes, subprovinces are included along with provinces, chartered cities, municipalities, and municipal districts.
The Act mentions the sum of five million pesos or so much thereof as may be necessary, indicating flexibility up to five million pesos.