Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
This proposed measure seeks to reduce the excise tax on petroleum products and 
coal by fifty percent (50%), suspend the imposition of applicable duties on their 
importation, and exempt the system loss charge in the sale of electricity from the value-
added tax (VAT), for a period of three (3) years. 
It seeks to mitigate the effects of the imposition of VAT and the increased excise taxes 
on petroleum products and coal that are too much of a burden on the consumers and 
businesses as we recover from the effects of COVID-19 and rising inflation. 
In view of the foregoing, the immediate approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
May 22, 2023
11:39 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
LOWERING THE COST OF ELECTRICITY AND PETROLEUM PRODUCTS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SEC. 1. Section 109 of the National Internal Revenue Code of 1997, as amended, is 
hereby further amended to read as follows: 
"SEC. 109. Exempt Transactions. – 
"(1) Subject to the provisions of Subsection (2) hereof, the following transactions 
shall be exempt from the value-added tax: 
"(A) xxx; 
"xxx; 
"(AA) xxx; 
"(BB) xxx; 
"(CC) SYSTEM LOSS CHARGE IN THE SALE OF ELECTRICITY FOR A 
PERIOD OF THREE (3) YEARS FROM THE DATE OF EFFECTIVITY OF THIS 
ACT; AND 
"[CC] (DD) Sale or lease of goods or properties or the performance of services 
other than the transactions mentioned in the preceding paragraphs, the gross 
annual sales and/or receipts do not exceed the amount of Three million pesos 
(P3,000,000)." 
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SEC. 2. Section 148 of the National Internal Revenue Code of 1997, as amended, is 
hereby further amended to read as follows: 
 
"SEC. 148. Manufactured Oils and Other Fuels. – There shall be collected on 
refined and manufactured mineral oils and motor fuels, the following excise taxes 
which shall attach to the goods hereunder enumerated as soon as they are in 
existence as such: 
"xxx 
"[For the period covering 2018 to 2020, the scheduled increase in the excise tax 
on fuel as imposed in this Section shall be suspended when the average Dubai 
crude oil price based on Mean of Platts of Singapore (MOPS) for three (3) months 
prior to the scheduled increase of the month reaches or exceeds Eighty dollars 
(USD 80) per barrel.] 
 
"[Provided, That the Department of Finance shall perform an annual review of 
the implementation of the excise tax on fuel and shall, based on projections 
provided and recommendations of the Development budget coordination 
Committee, as reconciled from the conditions as provided above, recommend 
the implementation or suspension of the excise tax on fuel: Provided, further, 
That the recommendation shall be given on a yearly basis: Provided, finally, That 
any suspension of the increase in excise tax shall not result in any reduction of 
the excise tax being imposed at the time of the suspension.] 
 
"PROVIDED, THAT BEGINNING FROM THE DATE OF EFFECTIVITY OF 
THIS ACT, THE EXCISE TAXES IMPOSED ON PETROLEUM PRODUCTS 
UNDER THIS SECTION SHALL BE REDUCED BY FIFTY PERCENT (50%) 
AND THE IMPOSITION OF APPLICABLE DUTIES THEREOF SHALL BE 
SUSPENDED, FOR A PERIOD OF THREE (3) YEARS." 
 
SEC. 3. Section 151 of the National Internal Revenue Code of 1997, as 27 amended, 
is hereby further amended to read 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 domestic or imported coal and coke, notwithstanding any incentives 
granted in any law or special law: 
"Effective January 1, 2018, Fifty pesos (P50.00) per metric ton; 
"Effective January 1, 2019, One hundred pesos (P100.00) per metric ton; and 
"Effective January 1, 2020, One hundred fifty pesos (P150.00) per metric ton. 
''PROVIDED, THAT BEGINNING FROM THE DATE OF EFFECTIVITY OF 
THIS ACT, THE EXCISE TAX IMPOSED ON COAL AND COKE UNDER THIS 
SECTION SHALL BE REDUCED BY FIFTY PERCENT (50%), AND THE 
IMPOSITION OF APPLICABLE DUTIES THEREOF SHALL BE SUSPENDED, 
FOR A PERIOD OF THREE (3) YEARS." 
"xxx" 
 
SEC. 4. Implementing Rules and Regulations (IRR). – Within thirty (30) days from 
the effectivity of this Act, the Secretary of Energy and the Secretary of Finance, upon 
the recommendation of the Commissioner of Internal Revenue, shall promulgate the 
necessary rules and regulations for its effective implementation. 
 
SEC. 5. Separability Clause. – If any provision or part hereof is declared 
unconstitutional, the remainder of this Act or any provision not affected shall remain in 
full force and effect. 
 
SEC. 6. Repealing Clause. – All laws, acts, decrees, executive orders, issuances, 
and rules and regulations or parts thereof which are contrary to and inconsistent with 
this Act are hereby repealed, amended or modified accordingly. 
 
SEC. 7. Effectivity. – This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
 
Approved,