Section 8
SEC. 8. To enable the National Government to properly finance the public elementary schools and meet the burden of their operation as provided in this Act, from and after July first, nineteen hundred and forty, the disposition of the proceeds of the taxes under Commonwealth Act Numbered Four hundred and sixty-five, known as the Residence Tax Law, shall be as follows: Of all the taxes collected and remitted to the Collector of Internal He venue as provided in section eight of Commonwealth Act Numbered Four hundred and sixty-five, fifty per centum shall be allotted in the following proportions by the said Collector arcnng the provinces, chartered cities, municipalities, and municipal districts on the basis of population as shown by the latest official census: One-half to the genera] funds of the provinces. A subprovince shall receive its proportionate share of the proceeds allotted to the province; and The other half to the general funds of the chartered cities, municipalities, and municipal districts. Out of the remaining fifty per centum of the proceeds of said taxes, chartered cities shall continue to receive the corresponding diare in the school fund of cities, municipalities, and nunicipal districts to which they under the provisions of law in force prior to Jraly first, nineteen hundred and forty. The balance shall accrue to the National Government. Similarly, the disposition of the proceeds mf certain taxes under Common weal th Act Numbered Four hundred and sixty-six, known as the National Internal Revenue Code, as referred to in sections three hundred and fifty-eight three hundred and sixty, and three hundred and sixty-three thereof shall be as follows: Three-sevenths of the proceeds of the internal revenue percentage taxes on agricultural products prescribed in sections one hundred aid eighty-seven and one hundred and eighty-eight as well as the taxes due from proprietors operators of rope factories, sugar centrals, rice mills, corn mills, coconut oil mills, and desiccated coconut factories prescribed in section one hundred and said Code shall accrue to the provinces and the remaining four sevenths shall accrue to the National Government. The apportionment of the provincial allotment shall be based on population as shown by the latest official census. Two and one-half per centum of the proceed of the tax on income shall accrue to the provinces, the remainder shall accrue to tlie National Government. Two and one-half per centum of the tax on estate, inheritance legacies, and other acquisitions mortis causa as well as on gifts, shall accrue to the provinces, two and one-half per centum shall accrue to the municipalities, and the remaining ninety-five per centum shall accrue to the National Government. The proceeds accruing to the provinces and municipalities shall be apportioned on the basis of population as show by the latest official census. Of the national internal revenue accruing to the National Treasury under section three hundred and sixty-two of the National Internal Revenue Code, there shall be set apart ten per centum as allotment to provinces, to the divided equally between their general and road and bridge funds: Provided, however, That instead of ten per centum only nine per centum shall be set apart as provincial, and road and bridge allotments, in the same proportion as specified herein, during the fiscal year 1940-1941; and ten per centum during the fiscal years thereafter. The foregoing modified allotments of the proceeds of certain taxes under Commonwealth Act Numbered Four hundred and sixty-six, known as the National Internal Revenue Code, to the contrary notwithstanding, chartered cities shall continue to receive the corresponding shares in the municipal allotment to which they were en titled under the provisions of law in force prior to July first, nineteen hundred and forty.