CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Fhst Regular Session 
) 
S. Bill No. 
Introduced bv Senator Ralbh G. Recto 
EXPLANATORY 
NOTE 
The generation and collection of revenues to be utilized by the government is 
purely an executive function. On the other hand, the Constitution mandates Congress to 
evolve a progressive system of taxation under a unifoim and equitable rule of taxation. 
For the year 2003, the revenues collected by the national government amount to 
Php537,361 million in lax revenues, Php88,071 million in non-tax revenues and 
Php1,198 million in grants for a total of Php626,630 million. Compared to the total 
expenditures of Php826,498 million, the resulting deficit amounted to Php199,868 
million. 
Given the dismal revenue generation and collection of the government for the past 
years, it is apparent that there is a need for a coordinated and intensified effort from both 
the executive and legislative departments with the objective of improving the revenue 
generation and collection program of the government in order to eventually plug the 
budget deficit. 
Ln this regard, this proposal seeks to institutionalize a Legislntive-Executive 
Revenue Oversight Council which will perform an advisory, consultative and oversight 
function in so far as the revenue generation and collection programs and targets of the 
government are concerned. This will serve to strengthen and intensify the tax collection 
efforts of the government to address the economic problems facing the country. 
Members of the Executive and Legislative departments will comprise the council 
in order not only to ensure a coordinated effort in achieving collection targets, but also to 
provide them a venue where loopholes and problems in revenue generation and collection 
programs of the government will be discussed. 
The urgency and importance of this proposal cannot be over-emphasized, such 
that the immediate approval ofthis measure is eamestlys ught 
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13'" CONGRESS OF THE WFPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
Introduced bv Senator Raloh G. Recto 
AN ACT 
REVENUE OVERSIGHT COUNCIL AND FOR 
OTHER PURPOSES 
CONSTITUTING THE LEGISLATIVE-EXECUTIVE 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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underprivileged. 
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The Legislative-Executive Revenue Oversight Council shall constitute an 
effective advisory, consultative and oversight mechanism to ensure that government 
revenue collection targets are achieved, if not surpassed, and for a simplified and 
consistent revenue generation, collection and utilization. 
SECTION 1. Declaration of Policy. - It is the policy of the State to maximize 
national government tax and non-tax revenues and optimize resource utilization within a 
framework of a fair, uniform, equitable and simple tax system in accordance with its 
constitutional mandate to evolve a progressive system of taxation and promote a more 
equitable distribution of opportunities, income, and wealth; a sustained increase in the 
amount of goods and services produced by the nation for the benefit of the people; and 
expanding productivity as the key to raising the quality of life for all, especially the 
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SEC. 2. Legislative-Executive Revenue Oversight Council - Pursuant to the 
foregoing policy, there is hereby constituted a consultative, advisory and oversight body 
to be known as the Legislative-Executive Revenue Oversight Council, hereinafter 
referred to as the Council. It shall he composed of fifteen (15) members, with the 
President as Chairman and the following as members: the Vice President, the President of 
the Senate, the Speaker of the House of Representatives, the Chairman of the Ways and 
Means Committee of the Senate, the Chairman of the Ways and Means Committee of tlie 


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House of Representatives, five (5) members of the Cabinet to be designated by the 
President, two (2) members of the Senate to be designated by the President of the Senate, 
two (2) members of the House of Representatives to be designated by t.he Speaker of the 
House of Representatives at least one (1) of whom shall come from the dominant 
minority party. 
Membership in the Council of the members of the legislature shall be an 
extension of their legislative functions. Membership in the Council of the members of 
the Cabinet shall be in an ex ofjcio capacity. 
The Chairman and members of the Council who are government officials shall 
serve in the Council without any additional emoluments, allowances, or pay, by virtue of 
and in connection with the positions they have been elected to or appointed to, as the case 
may be. 
The Council may form its own subcommittees as may be needed and may call on 
any government agency or resource persons for assistance. 
SEC. 3. Functions of the Council - The Council shall serve as a consultative, 
advisory and oversight body to the President as the head of the national economic and 
planning agency for further consultations and advice on programs and policies essential 
to the realization of the revenue generation and collection targets set by the national 
government with the following functions: 
a) Determine and recommend revenue generation and collection goals in pursuance 
of established policies which shall guide the formulation and implementation of 
the national development plan; 
b) Provide policy advice to the President on vital issues affecting the revenue 
program of the country; 
c) Direct the study of measures to ensure that regional development plans and 
programs are integrated into the national revenue collection plan; 
d) Monitor and ensure the proper implementation of the revenue laws and programs 
of the country; 
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e) To the extent necessary, to require of the revenue generating and coliecting 
agencies of the government submission of all pertinent information including, but 
not limited to, industry audits, collection performance data and taxpayer returns 
and data, Provided, that any return or return infolmation which can be associated 
with, or otherwise identify, directly or indirectly, a particular taxpayer shall he 
furnished the Council only when sitting in an Executive Session unless such 
taxpayer otherwise consents in writing to such disclosure; 
f) 
Review the collection performance of the revenue-generating and collecting 
agencies of the government; 
g) Review the relationship of the revenue generation and collection agenda or 
program to the national development plan to ensure the integration of both; 
h) Study and recommend to the President and to Congress additional sources of 
revenue as well as measures to reduce unnecessary expenditures to the end that 
the resources of the Government will be used to the optimum 
SEC. 4. Secretariat - The Council shall have the National Economic and 
Development Authority secretariat as the principal secretariat in providing staff support 
to the Council, assisted by personnel from the Presidential Management Staff and the 
economic planning staff of both the Senate and the House of Representatives. 
SEC. 5. Meetings of the Council - The Council shall meet at least once every quarter, 
but may be convened by its Chairman to such special meetings as may be necessary. The 
members of the Council shall be duly notified of any meeting in advance. The first 
meeting of the Council shall take place within one (1) month from the effectivity of this 
Act at a time and place to be designated by the Chairman. 
SEC. 6. Implementing Rules and Regulations - Within sixty (60) days from the 
approval of this Act, the Council shall promulgate all the necessary rules and regulations 
to carry out the provisions of this Act. 
SEC. 7. Separability Cla.use - In case any provision hereof is declared 
unconstitutional, the other provisions not so declared and affected shall remain in force 
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and effect. 
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the Oficial Gazette. 
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Approved, 
SK. 8. Repealing Clause - All laws and executive orders which a-e 
incoiisistcnl 
with the provisions of this Act are hereby repeated or amended accordingly. 
SEC. 9. Effectivity - This Act shall take effect fifteen (15) days after its publication in 
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