FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Honorable Rufus B. Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

House Bill No, 4309
EXPLANATORY NOTE

At present, the government imposes an additional Value Added Tax on
petroleum products at 12% of the value of the fuel. And with the prices of oil per
barrel continuing to rise worldwide, the tax base of fuel also increases which leads to
higher gas prices for the Filipino people. Also the continuous fluctuation of fuel prices
Jeads to instability in local gas prices which provides additional hardship and burden
to our peopte.

As of February 2011, gasoline is priced between P48.30-P49.74 per liter while
diesel is priced at P39.95 — P42.10 per liter. And there are reports that the Price of oil
will continue to rise because of uncertainty in the Middle East which means that local
prices would also increase.

‘One way to help ease the burden is to {imit the imposition of the Value-Added
Tax. This way, the government would not lose out too much while at the same time,
the consumers are not imposed such a heavy burden when it comes to gas prices.

In view of the foregoing, immediate approval of this bill is earnestly requested.

RUFUS B. Ré IGUEZ

MAXIMO: Kose JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES
£309

Introduced by Honorable Rufus B, Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

LIMITING THE IMPOSITION OF THE 12 PERCENT VALUE ADDED TAX ON
PETROLEUM PRODUCTS ONLY ON INSTANCES WHEN THE WORLD PRICE
OF OIL 1S US$80 OR LOWER PER BARREL

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1, It is hereby mandated that the 12 percent Value Added Tax shall only
be imposed on petroleum products when the price of oil in the world market is
US$80 or below.

SEC. 2. Repealing Clause — All laws, decrees, orders, instructions, proclamations,
tules and regulations or parts thereof, which are inconsistent with this Act, are
hereby repealed, modified, or amended accordingly.

SEC. 3. Effectivity - This Act shall take effect fifteen (15) days after its complete
Publication in the Official Gazette or in a newspaper of general circulation.

Approved,


FIFTEENTH CONGRESS: )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES:

introduced by Honorable Rufus B. Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

EXPLANATORY NOTE

At present, the govemment imposes an additional Value Added Tax on
Petroleum products at 12% of the value of the fuel. And with the prices of oil per
barre! continuing to rise worldwide, the tax base of fuel also increases which leads to
higher gas prices for the Filipino people. Also the continuous fluctuation of fuel prices.
leads to instability in local gas prices which provides additional hardship and burden
to our people.

As of February 2011, gasoline is priced between P48.30-P49.74 per liter while
diesel is priced at P39.95 - P42.10 per liter. And there are reports that the price of oil
will continue to rise because of uncertainty in the Middle East which means that local
prices would also increase.

One way to help ease the burden is to limit the imposition of the Value-Added
Tax. This way, the government would not lose out too much while at the same time,
the consumers are not imposed such a heavy burden when it comes to gas prices.

In view of the foregoing, immediate approval of this bill is earnestly requested,

RUFUS B. RI IGUEZ

MAXIMO: Nboover JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES =}
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES
209

Introduced by Honorable Rufus B. Rodriguez and
Honorable Maximo B. Rodriguez, Jr.

AN ACT
LIMITING THE IMPOSITION OF THE 12 PERCENT VALUE ADDED TAX ON
PETROLEUM PRODUCTS ONLY ON INSTANCES WHEN THE WORLD PRICE
OF OIL IS US$80 OR LOWER PER BARREL
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. It is hereby mandated that the 12 percent Value Added Tax shall only
be imposed on petroleum products when the price of oil in the world market is
US$80 or below

SEC. 2, Repeating Clause — All taws, decrees, orders, instructions, proclamations,
rules and regulations or parts thereof, which are inconsistent with this Act, are
hereby repealed, modified, or amended accordingly.

SEC, 3. Effectivity - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in a newspaper of general circulation.

Approved,