Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

SEVENTEENTH CONGRESS
First Regular Session

> aye, 0.6 JUN

1S pate:

House Bitt No,_ 5845

Introduced by HONORABLE SCOTT DAVIES S. LANETE, M.D.

EXPLANATORY NOTE.

‘There are two broad types of trans fats found in foods: naturally-occurring and
artificial frans fats. Naturally-occurring trans fats are produced in the gut of some animals
and foods made from these animals (eg, milk and meat products) may contain small
quantities of these fats. Artificial trans fats (or trans fatty acids) are created in an industrial
process that adds hydrogen to liquid vegetable oils to make them more solid '

Food containing artificial trans fats are part and parcel of an average Filipino meal. Filipinos
have grown fond of cheap and affordable processed food containing artificial trans fats that
the demand for them has led to more and more products entering the market competition.

Its not a secret that artificial trans fats, apart from the food preservation they bring, cause a
lot of health risks. Artificial rans fats raise bad (LDL) cholesterol levels and lower good
(HDL) cholesterol levels. Eating rrans fats increases the risk of developing heart disease and
stroke.” It’s also associated with a higher risk of developing type 2 diabetes. These health
risks have forced other countries 10 adopt policies to lessen public consumption of Food
containing artificial trans fats.

‘The 1987 Philippine Constitution enjoins the state to protect and promote the right of health
of the people and instill health consciousness among them. Thus, it is high time for the
Philippines to adopt strict measures in ensuring the safety and well-being of Filipinos.
Imposing a tax on the production, sale and consumption of food containing artificial trans fats
will not only deter citizens from consuming more than the prescribed daily intake but will
also generate additional funds for the government

Therefore, the passage of this bill is urgently needed.

SCOTT DAVIES S. LA M.D.
i ror

‘Third District, Province of Masbate

' Bite [peskthiyforgood heart.org/Est-smart/Articles/Trans-Pat

Y ReCkiveD

17.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._5B45

Introduced by HONORABLE SCOTT DAVIES S. LANETE, M.D.

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 8424,
OTHERWISE KNOWN AS THE “NATIONAL INTERNAL REVENUE CODE OF
1997" AND FOR OTHER PURPOSES

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

‘Sec. |. Section | of Republic Act No. 8424 is hereby amended as follows:
“SEC. 151 Mineral Products. -

(A) Rates of Tax. - There shall be levied, assessed and collected on minerals,
mineral products and quarry resources, excise tax as follows

(1) On coal and coke, a tax of Ten pesos (P10.00) per metric ton;

(2) On all nonmetallic minerals and quarry resources, a tax of two percent
(2%) based on the actual market value of the gross output thereof at the time of
removal, in the case of those locally extracted or produced; or the value used
by the Bureau of Customs in determining tariff and customs duties, net of
excise tax and value-added tax, in the case of importation

Notwithstanding the provision of paragraph (4) of Subsection (A) of this
Section, locally extracted natural gas and liquefied natural gas shall not be
subject to the excise tax imposed herein

(3) On all metallic minerals, a tax based on the actual market value of the gross
output thereof at the time of removal, in the case of those locally extracted or
produced; or the value used by the Bureau of Customs in determining tariff
and customs duties, net of excise tax and value-added tax. m the case of
importation, in accordance with the following schedule,

(a) Copper and other metallic minerals;


(i) On the first three (3) years upon the effectivity of Republic Act No. 7729,
‘one percent (1%),

(ii) On the fourth and the fifth years, one and a half percent (1 1/2%); and
(iii) On the sixth year and thereafter, two percent (2%);
(b) Gold and chromite, two percent (2%).

(4) On indigenous petroleum, a tax of three percent (3%) of the fair
international market price thereof, on the first taxable sale, barter, exchange or
such similar transaction, such tax to be paid by the buyer or purchaser before
removal from the place of production. The phrase ‘first taxable sale, barter,
exchange or similar transaction’ means the transfer of indigenous petroleum in
its original state to a first taxable transferee. The fair international market price
shall be determined in consultation with an appropriate government agency;

For the purpose of this Subsection, ‘indigenous petroleum’ shall include
locally-extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral
gas and all other similar or naturally associated substances with the exception
Of coal, peat, bituminous shale and/or stratified mineral deposits

(5).On canned or packed products, a tax of Five pesos (P5,00) shall be levied

Sec. 2. The Department of Finance in coordination with other government agencies
concemed, shall promulgate not later than thirty (30) days from the effectivity of this Act, the
necessary rules and regulations for the effective implementation of this Act

Sec 3. If any part or provision of this Act shall be held unconstitutional or invalid, other

provisions which are not affected thereby shall continue to be in full force and effect

Sec. 4, All laws, issuances or parts thereof inconsistent with this Act are hereby repealed or

modified accordingly

Sec 5. This Act shall take effect fifteen (15) days after its publication in the Official Gazette

or in at least two (2) newspapers of general circulation.

Approved.