Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNo. £178

Introduced by Representatives
HORACIO P. SUANSING, JR. and ESTRELLITA B, SUANSING

AN ACT
IMPOSING EXCISE TAX ON SINGLE-USE PLASTIC BAGS, CREATING FOR THE
PURPOSE SECTION 150-C OF THE NATIONAL INTERNAL REVENUE CODE OF
1997, AS AMENDED

EXPLANATORY NOTE

The use of plastic bags as means of transporting fresh produce, meat, clothing and other
consumption goods has become customary in the conduct of trade not only in the Philippines
but in other countries as well. With their relatively low cost, versatility and durability, it is no
surprise that millions of citizens worldwide opt to utilize plastics. According to the United
Nations, about four (4) to five (5) trillion plastic bags are used annually for personal and
commercial purposes."

However, this mass consumption of plastics, most of which are single-use, has had significant
detrimental effects on the environment. Among the four to five trillion plastic bags that are
used each year, billions of bags end up as litter — and given the toxicity of plastic substances
especially when ingested by humans and animals, the billions of plastic bags that end up as
waste inland and in our oceans pose a grave threat to the very existence of ecosystems and the
species that populate them. Plastic marine debris have already been documented to harm
approximately 267 different species through entanglement and ingestion of plastic (including
sea turtles, dolphins and whales), and it has been estimated that over 400,000 marine mammals
die annually due to plastic pollution in our oceans.”

On the other hand, humans are constantly exposed to possible carcinogenic chemicals that are
used in the production of plastics, such as Bisphenol A (BPA), which studies have shown can
potentially be related to disruptions in gene expression (thereby affecting biological functions
related to the body’s metabolism and development) as well as disruptions in fertility and sexual
maturation.’

To reduce its costly environmental impact, several countries have already imposed taxes on
plastic bags, while others have even gone so far as to implement a total ban. Cities within the

| Beat Plastic Pollution. Retrieved from https://www.unenvironment.org/interactive/beat-plastic-pollution/

2 Le Guern, C. (2018, March). When the Mermaids Cry: The Great Plastic Tide. Retrieved June 28, 2019, from
http://plastic-pollution.org.

3 Mathieu-Denoncourt, Justine; Wallace, Sarah J.; de Solla, Shane R.; Langlois, Valerie S. (November 2014).
"Plasticizer endocrine disruption: Highlighting developmental and reproductive effects in mammals and non-
mammalian aquatic species". General and Comparative Endocrinology. Retrieved June 28, 2019, from
https://doi.org/10.1016/j ygcen.2014.11.003.


United States, namely Washington D.C., San Francisco, CA and Seattle, WA, have
dramatically reduced plastic pollution as a result of implementing taxes on plastic bags, curbing
plastic consumption by 85 percent, 72 percent and 78 percent, respectively.’ Canada has also
adopted waste-reducing policies, particularly the ban on plastic straws and on the distribution
of polystyrene foam cups and containers. Other countries that have also enacted laws banning
plastic bags include India, Kenya, United Kingdom, Australia and China.”

Despite the enactment of Republic Act 9003, or the Ecological Solid Waste Management Act
of 2001, the Philippines still remains as one of the countries with the highest amount of plastic
bag waste ending up in oceans.° Based on the data from the Ocean Conservancy, the country
generates about 2.7 million metric tons of plastic waste and half a million metric tons of plastic-
waste leakage each year.’ Aside from the short- and long-term consequences of plastic use on
the environment and the health of humans and animals alike, the mass consumption of plastics
in the Philippines further magnifies the flooding problem that Filipinos experience, especially
during the typhoon season.

Given these growing concems, it is therefore necessary that this Congress addresses the
problem relating to the proliferation of plastic bag waste. Pursuant thereto, this bill seeks to
impose excise tax on single-use plastic bags. By imposing this levy, this bill endeavors to
encourage the exploration and utilization of environment-friendly alternatives to single-use
plastic bags. Furthermore, this proposed measure aims to generate additional revenues for the
government which could be used to finance programs and projects to counter the harmful
effects of plastic pollution in the Philippines.

In view of the foregoing, the passage of this measure is earnestly sought.*

won. suaNsinc, SR. ES: ITA B. SUANSING

2™ District of Sultan Kudarat 1* District of Nueva Ecija|

“10 Cities and Countries Confronting Plastic Bag Pollution Head-On. Retrieved from
https://www.earthday.org/2018/04/20/10-cities-and-countries-confronting-plastic-bag-pollution-head-on/

* Ibid.

© 2018 World Environment Day: Philippines Wages War vs Plastic Waste. Retrieved from
http://environews.ph/waste/2018-world-environment-day-philippines-wages-war-vs-plastic-waste!

nh

* This bill was originally filed during the Seventeenth Congress, Third Regular Session.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL: NO! 178

Introduced by Representatives
HORACIO P. SUANSING, JR. and ESTRELLITA B, SUANSING

AN ACT
IMPOSING EXCISE TAX ON SINGLE-USE PLASTIC BAGS, CREATING FOR THE
PURPOSE SECTION 150-C OF THE NATIONAL INTERNAL REVENUE CODE OF
1997, AS AMENDED

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

SECTION 1. Short Title. — This Act shall be known as the “Single-Use Plastic Bag Tax Act.”

SECTION 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, among others, the proper exercise of its power of
taxation.

SECTION 3. A new section designated as Section 150-C under Chapter VI, Title VI of the
NIRC, as amended, is hereby created to read as follows:

"SEC. 150-C. SINGLE-USE PLASTIC BAGS. —

(A) RATE AND BASE OF TAX. — EFFECTIVE JANUARY 1, 2020, THERE
SHALL BE LEVIED, ASSESSED AND COLLECTED AN EXCISE TAX IN
THE AMOUNT OF TEN PESOS (PHP 10.00) FOR EVERY SINGLE-USE
PLASTIC BAG REMOVED FROM THE PLACE OF PRODUCTION OR
RELEASED FROM THE CUSTOMS HOUSE.

AS USED IN THIS SECTION, SINGLE-USE PLASTIC BAGS SHALL
MEAN SINGLE-USE PLASTIC CARRIER BAGS, WITH OR WITHOUT
HANDLE, WHICH ARE SUPPLIED TO CONSUMERS AT THE POINT OF
SALE OF GOODS OR PRODUCTS.

(B) RETURN AND PAYMENT OF TAX. — THE PROVISION OF SECTIONS 130
AND 131 OF THE NIRC OF 1997, AS AMENDED, SHALL APPLY TO
SINGLE-USE PLASTIC BAGS AS APPROPRIATE.

(C) NON-PAYMENT OF EXCISE TAX. — NON-PAYMENT OF THE EXCISE TAX
IMPOSED UNDER THIS ACT SHALL BE SUBJECT TO THE PERTINENT
PROVISIONS OF THE NIRC OF 1997, AS AMENDED, REGARDING


COLLECTION OF UNPAID TAXES AND IMPOSITION OF
CORRESPONDING FINES. SURCHARGES AND PENALTIES. AND
IMPRISONMENT AND/OR CLOSURE OF BUSINESS."

SECTION 4. Section 288 of the NIRC of 1997. as amended, is hereby further amended to read
as follows:

“SEC. 288. Disposition of Incremental AND OTHER [Revenue] REVENUES. —

(A) xxx
(B) xxx
(C) xxx
(D) xxx
() xx
©) xx
(G) REVENUES FROM THE EXCISE TAX ON SINGLE-USE PLASTIC BAGS.

FIFTY PERCENT (50%) OF THE REVENUES FROM THE EXCISE TAX ON
SINGLE-USE PLASTIC BAGS SHALL BE ALLOCATED TO THE SOLID
WASTE MANAGEMENT FUND PROVIDED UNDER SECTION 46 OF REPUBLIC
ACT NO. 9003 OR THE ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF
2000. THE REMAINING REVENUES SHALL ACCRUE TO THE GENERAL
FUND."

SECTION 5. Implementing Rules and Regulations. — The Secretary of the Department of
Finance, upon the recommendation of the Commissioners of the Bureau of Internal Revenue
and the Bureau of Customs, shall, within sixty (60) days from the effectivity of this Act,
promulgate rules and regulations to faithfully implement the intent and provisions of this Act:
Provided, That the failure of the Secretary of the DOF to do so shall not prevent the
implementation of this Act upon its effectivity.

SECTION 6. Separability Clause. — If any provision of this Act is subsequently declared
invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain
in full force and effect.

SECTION 7. Repealing Clause. — All other laws, acts, presidential decrees, executive orders,
issuances, presidential proclamations, rules and regulations or parts thereof which are contrary
to and inconsistent with any provision of this Act are hereby repealed, amended or modified
accordingly.

SECTION 8. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication either in the Official Gazette, or in at least one (1) newspaper ‘of general circulation.

Approved,