Republic of the Philippines

Province of Cagayan
Municipality of Gonzaga

April 2, 2012

HON. CARLITO F. PENTECOSTES, JR.

Municipal Mayor
Gonzaga, Cagayan

Subject: Proposed Amendment to the New Revenue Code

Sir:

The undersigned went over the provisions of the Municipal Revenue

Code, as amended, and it is his humble opinion that some provisions need to be
amended in order to suit with the changing business and investment conditions
of the municipality.

One vital part of the Revenue Code that needs immediate overhauling is
Article E (Rental Fee on Mineral Lands). Thus, the suggested amendment, to wit:

1. MUNICIPAL WATERS should be included as subject for the assessment

and collection of rental fee for the exploration, development and
disposition of minerals, so that when the provision is amended it will be
read as: RENTAL FEE ON MINERAL LANDS AND MUNICIPAL WATERS;

2. Under the definition of terms (Section 5e.01), MUNICIPAL WATERS

should be given a technical definition for purposes of the collection of
rental fee on exploration, development and disposition of minerals. It is
also suggested that a LESSEE and PERMITTEE or GRANTEE be defined;

3. Section 5E.02 (Collection of Fee), is also suggested to be amended to

include a grantee or permittee, as subject of the said rental fee on
mineral lands and municipal waters, so that when amended the
provision should be read, thus –

Section 5E.02. Collection of Fee. There shall be collected an

annual rental fee from the lessee or permittee/grantee of
mineral lands and municipal waters, respectively, in this
municipality for the exploration, development and
exploitation of minerals from the said lands or municipal
waters covered by the lease or permit/grant, in
accordance with the following rates: (emphasis supplied on
proposed amendment)
Xxx

4. Section 5E.03 (Time of Payment) is likewise proposed to be amended

as follows:

Section 5E.03. Time of Payment. The rental fee shall be paid

in advance to the Municipal Treasurer or his duly authorized

1
 representative on the effectivity date of the lease or
granting of the permit/grant, as the case may be, and on
the same date every year thereafter, during the duration of
the lease or permit/grant. (emphasis supplied on proposed
amendment)

We are looking forward for other productive professional engagements

and that the foregoing proposed amendments to the Revenue Code will cause
some sort of advantage in the furtherance of the development agenda of your
administration.

Thank you.

Very truly yours,

RAMSES S. PERALTA
Consultant on Social Development