Dear mindful readers,
Just recently, the Subic Bay Metropolitan Authority (SBMA), a government-owned and controlled corporation (GOCC) under the Office of the President and created under Republic Act no. 7227, or the Bases Conversion and Development Act of 1992, distributed revenue shares or dividends to Olongapo City and the seven other municipalities in recognition of their roles and contributions to the development of the Subic Bay Freeport Zone (SBFZ). This revenue sharing is primarily aimed at promoting equitable growth and ensuring that the local governments benefit from the economic activities taking place within the zone.
As provided under RA 7227, the SBMA is mandated to allocate a portion of its earnings to neighboring Local Government Units (LGUs) to support their development initiatives. These shares provide LGUs with additional resources to fund public services, infrastructure projects, and social programs to help alleviate the quality of life of their respective constituencies and concerned stakeholder communities. More importantly, by sharing dividends to neighboring localities, the dynamic cooperation and partnerships between the SBMA and local governments remain sustained and further strengthened, thereby ensuring collaboration and harmonious work relationships that ultimately yield inclusive and broad-based economic growth. Local development efforts and infrastructure support have also been undeniably integral to the growth and success of the economic zone, justifying their share in the revenues generated.
Last Monday, August 4, 2025
the SBMA released the revenue shares for the first semester of this year in a simple turnover ceremony at the SBMA Corporate Boardroom. The shares were sourced from revenues collected between January and June this year, and are given to contiguous LGUs namely the City of Olongapo, Subic, Castillejos, San Marcelino and San Antonio in Zambales, and Hermosa, Morong and Dinalupihan in Bataan. Dividend shares benefit more than 785,000 individuals from the said LGUs thru local projects in tourism, infrastructure, education, peace and order, health, livelihood generation, and social services.
Olongapo City, the lone recipient city, received the largest share amounting to Php46,270,769.33 due to its large population and land area.
In Zambales, Subic earned Php29,683,317.56, the second biggest amount received. Next is San Marcelino with Php23,763,694.31, while Castillejos received Php17,987,887.14, and San Antonio with Php16,824,398.47.
Meanwhile, in Bataan, Dinalupihan received Php24,643,508.58, while Hermosa received Php21,186,145.67, and Morong received Php17,489,910.85.
The recent LGU shares distribution representing the first half of 2025 came timely since the provinces of Zambales and Bataan were adversely affected by three typhoons that hit the country a week ago, leaving hundreds of families displaced and urgently in need of vital social services.
LGU shares are determined according to 50 percent population, 25 percent land area, and 25 percent equal sharing. Net shares are computed by adding the current base share to the ten percent retention amount from two years prior, but less ten percent retention amount from the current period.
This year however, there was a slight dip in the amount of dividends for the same period in 2024 which was ₱204.7 million, to ₱197.8 million in 2025 due to the imposition of 25 percent tax by the Department of Finance, which is now remitted by the SBMA to the Bureau of Internal Revenue (BIR), as well as the removal of the five percent tax privilege, wherein three percent used to be remitted to the BIR, and two percent was distributed as dividends among the eight contiguous LGUs.
The revenue shares collected from January to June are released in August, and revenue shares collected from July to December are released in February of the following year.
In essence, the revenue shares received by neighboring towns of the Subic Bay Freeport Zone has, for the past 33 years, served as a mechanism to promote inclusive development, ensure local government participation, and as an effective and efficient tool to aid in alleviating the region’s socio-economic conditions and urban development.
Love & light,
Iamempress22
