FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regufar Session 
) 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Fines as penalties under the Revised Penal Code and other penal laws need to be 
updated regularly to take into consideration inflation and the present value of the peso to 
truly become effective in punishing various crimes and offenses. 
For example, the crime of grave coercion is committed by any person who, without 
authority of law, shall, by means of violence, prevent another from doing something not 
prohibited by law, or compel him to do something against his will whether it be right or 
wrong. This is found under the Revised Penal Code, which became effective on January 1, 
1932, and carries a penalty of arrest0 mayor and a fine not exceeding 500 pesos for its 
violation. Considering the gravity of the crime, the imposable fine not exceeding 500 pesos 
for grave coercion is now only a meager sum, which does not effectively punish nor 
forcefully deter. Taking into consideration inflation, assuming at 10% from 1932 to 2007, 
and the present value of the peso, this fine should already be an amount not exceeding 
769,496.70 pesos. 
efficacy of penal provisions imposing fines in Philippines laws. 
Thus, this bill seeks to regularly index fines to adjust to inflation to ensure the 
Senator 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
) 
Introduced by Senator Richard J. Gordon 
AN ACT TO INDEX FINES OF THE REVISED PENAL CODE AND VARIOUS PENAL 
LAWS TO ADJUST TO INFLATION 
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 "lndexation of Fines Act of 
2007." 
Sec. 2. Policy. - It is the policy of the State to promote and maintain the efficacy of 
penalties in the Revised Penal Code and various penal laws by indexing fines to adjust to 
inflation. 
Sec. 3. Definifions. -As used in this act, 
(1) Fines shall refer to the pecuniary punishment provided in penal laws. 
(2) NEDA shall refer to the National Economic Development Authority. 
(3) Penal Laws shall refer to that branch or division of public law, which defines 
crimes, treats of their nature, and provides for their punishment. 
Sec. 4. lndexation of Fines. - The effective value of imposable fines adjusted to 
inflation in the Revised Penal Code and various penal laws shall be computed as follows: 
The inflation rate based on the data provided by the NEDA for each year shall be 
derived by adding one to the decimal equivalent of the inflation rate. All computed inflation 
rates for each year from the effectivity of the penal law until the year immediately preceding 
the present year shall be multiplied against one other. The product shall be rounded off to 
the nearest hundredth decimal point, which shall then be multiplied with the fine or range of 
fine imposed by the penal law. 
This is expressed in the following formula, An = Ao (l+i)i, where An is the present 
value of the fine, Ao is the original value of the fine from the effectivity of the penal law, i iS 


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the inflation rate based on the data provided by NEDA, and t is the number of years from the 
effectivity of the penal law until the year immediately preceding the present year. 
Sec. 5. Applicability. - This Act shall apply to all fines imposed by penal laws, 
including but not limited to the Revised Penal Code. 
Sec. 6. Annual lndex of Fines. - The NEDA shall compute, publish, and 
disseminate an Annual lndex of Fines containing the effective value of imposable fines 
adjusted to inflation in the RPC and various penal laws for the guidance of the courts and 
information of the people. 
The first index of fines pursuant to this Act shall be issued within three (3) months 
from the effectivity of this Act and every year thereafter. 
Sec. 7. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
Sec. 8. Appropriation. - The initial funding to carry out this Act shall be charged 
against the current year’s appropriation. Thereafter, such sums as may be necessary shall 
be included in the annual General Appropriations Act. 
Sec. 9. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain 
in force and effect. 
Sec. 10. Effectivity. - This Act shall take effect after fifteen (15) days following the 
completion of its publication either in the Official Gazette or in a newspaper of general 
circulation in the Philippines. 
Approved,