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Republic of the «Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No. 1996

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT IMPOSING EXCITES TAX ON SINGLE-USE PLASTIC BAGS, AMENDING FOR
‘THE PURPOSE SECTION 288 AND ADDING A NEW SECTION 150-C IN THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

EXPLANATORY NOTE

Yearly, around 500 billion plastic bags are used worldwide. However, only 9% are recycled and 12%
incarcerated. Plastic pollution affects the natural processes and alters habitats of humans and animals,
as well as the food production and social well-being of billions of people. One of the major effects of
plastic pollution in our country is how waste runoff quickly clog drainage systems and waterways,
endangering communities’ hygiene especially during heavy periods of rain.

Given the ecological and health hazards brought about by the rampant use of plastics, the government
needs to strengthen existing mechanisms to disincentivize the use of plastics through taxation.
‘According to one study, a tax on plastics can lead to the reduction of the production and consumption
of plastic products. The same study found that environmental taxation is a key ingredient to catalyze
the transition to a circular economy.

Thus, this bill seeks to move towards this direction by imposing a P100 excise tax for every kilogram
of plastic bag removed from the place of production or released from the custody of the Bureau of
Customs, subject to periodic increase every four years effective on January 1, 2026. Furthermore, the
passage of this bill in the House of Representatives in the 19 Congress attests to the significance and
importance of the bill.

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

Long District, Quirino


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No._1996

Introduced by Representative Midy N. Cua
Lone District, Quirino

AN ACT IMPOSING EXCITES TAX ON SINGLE-USE PLASTIC BAGS, AMENDING FOR
THE PURPOSE SECTION 288 AND ADDING A NEW SECTION 150-C IN THE
NATIONAL INTERNAL RI UE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. ~ This Act shall be known as the “Single-Use Plastic Bags Tax Act.”
fion 2. Declaration of Policy. ~ It is hereby declared the policy of the State to protect and advance

the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of
nature through the proper exercise of its power of taxation,

Section 3. A new section designated as Section 150-C of the National Internal Revenue 7 Code of 1997,
as amended, is hereby added to read as follows:

“SEC, 150-C. SINGLE-USE PLASTIC BAGS. -

(A) RATE AND BASE OF TAX. — THERE SHALL BE LEVIED, ASSESSED,
COLLECTED AN EXCISE TAX IN THE AMOUNT OF ONE HUNDRED PESOS
(PHP100.00) FOR EVERY KILOGRAM OF SINGLE-USE PLASTIC BAG REMOVED
FROM THE PLACE OF PRODUCTION OR RELEASED FROM THE CUSTODY OF
THE BUREAU OF CUSTOMS.

THE RATE OF TAX IMPOSED UNDER THIS SUBSECTION SHALL BE
INCREASED BY FOUR PERCENT (4%) EVERY YEAR, EFFECTIVE ON JANUARY
1, 2026 THROUGH REVENUE REGULATIONS ISSUED BY THE SECRETARY OF
FINANCE.

SINGLE-USE PLASTIC BAGS SHALL REFER TO SECONDARY LEVEL PLASTICS
MADE OF SYNTHETIC OR SEMISYNTHETIC ORGANIC POLYMER, SUCH AS
"ICE", "LABO" OR "SANDO" BAGS, WITH OR WITHOUT HANDLE, USED AS
PACKAGING FOR GOODS OR PRODUCTS.

(B) FILING OF RETURN AND PAYMENT OF EXCISE TAX ON SINGLE-USE PLASTIC
BAGS. - THE PROVISIONS OF SECTIONS 130 AND 131 OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED, ON THE FILING OF
RETURN AND PAYMENT OF EXCISE TAX SHALL APPLY.



(C) NON-PAYMENT OF EXCISE TAX. - NON-PAYMENT OF THE EXCISE TAX
IMPOSED UNDER THIS ACT SHALL BE SUBJECT TO THE PERTINENT
PROVISIONS UNDER TITLES VII] AND X OF THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED, REGARDING COLLECTION OF
UNPAID TAXES AND IMPOSITION OF CORRESPONDING _ FINES,
SURCHARGES, PENALTIES, AND IMPRISONMENT OR CLOSURE OF
BUSINESS.”

Section 4, Section 288 of the National Internal Revenue Code of 1997, as amended, is hereby further
amended to read as follows:

“SEC. 288. Disposition of Incremental AND OTHER Revenues. ~

(A) xxx

(B) xxx

(C) xxx

(D) xxx

(E) xxx

(F) xxx

(G) xxx.

(H) DISPOSITION OF INCREMENTAL REVENUES FROM THE EXCISE TAX ON

SINGLE-USE PLASTIC BAGS. -

THE INCREMENTAL REVENUES FROM THE IMPOSITION OF THE EXCISE
TAX ON SINGLE-USE PLASTIC BAGS SHALL BE ALLOCATED TO PROGRAMS
OF THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES FOR
THE IMPLEMENTATION OF REPUBLIC ACT NO. 9003, OTHERWISE KNOWN AS
THE 'ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000" IN
MUNICIPALITIES.”

Section 5. Implementing Rules and Regulations. ~ Within sixty (60) days from the effectivity of this
Act, the Secretary of Finance shall, upon the recommendation of the Commissioners of the Burcau of
Internal Revenue and the Bureau of Customs and, in consultation with the Department of Environment
and Natural Resources, issue and promulgate rules and regulations for the effective implementation of
this Act.

declared unconstitutional or invalid,
1c to be in full force and effect.

Section 6. Separability Clause. ~ If any provision of this Act
other parts or provisions hereof not affected thereby shall cor

Section 7. Repealing Clause. ~ All laws, decrees, orders, rules and regulations or parts thereof,
inconsistent with this Act, are hereby repealed, amended, or modified accordingly.

Section 8. Effectivity, ~ This Act shall take
Gazette or in a newspaper of general circulation.

fifteen (15) days after its publication in the Official

Approved,