FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
This bill seeks to provide the Sugar Regulatory Administration (SRA) with adequate funding to 
enable it to pursue and carry out its mandates and objectives under its Charter, Executive Order 
No. 18, dated May 28, 1986. Since its creation and organization, the activities and programs of 
the SRA, especially on research and development, have suffered continuous setback due to lack 
of funds. 
In the consideration of this bill, it is noteworthy to point out the historical fact that the 
predecessors of the SRA, namely, the Philippine Sugar Institute and the Sugar Quota 
Administration, were adequately funded from the following sources: 
1. Commonwealth Act No. 567 (Sugar Adjustment and Stabilization Fl)nd) which 
imposed a PO.02 basic tax on every picul of the total marketable sugar manufactured. 
2. Republic Act No. 1328 (Philippine Sugar Institute Special Fund) which provided that 
the PO.02 basic tax per picul collected under C.A. No. 567 shall be availed for use of 
the Philippine Sugar Institute. 
3. Republic Act No. 3051 providing that the 50% of the Proceeds of the percentage tax 
shall accrue to the Sugar Research and Stabilization Fund. 
The revenue derived under the aforesaid laws accrued to the research and development programs 
of the agencies, which preceded the SRA. The said laws were repealed upon the adoption of the 
Value Added Tax (VAT) on January 1, 1988, pursuant to Executive Order No. 273, leaving no 
provision for the continuance of the source of funds for the SRA. 
It is noted that the share of the component of the industry in the present tax burden is not 
efficiently channeled back to where it should - the sugar industry and the agency charged with 
the stabilization and promotion of its growth and development - the SRA. 
This bill, therefore, seeks to correct an oversight, if not an injustice, and to provide a mechanism 
by which V AT collections on sugar and its by-products are channeled back to the sugar industry 
in the form of funding for the SRA. 
In view of the foregoing, approval of this bill is earnestly recommended. 
o "SoJ:. :LAN~SlV 
Senator 
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FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
I Q 
JUL -6 1\9 :02 
SENATE 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
TO STABILIZE THE SUGAR INDUSTRY BY ESTABLISHING THE SUGAR 
INDUSTRY RESEARCH AND STABILIZATION FUND AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Sugar Industry Stabilization 
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Act of2010." 
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SEC. 2. Collection for the Sugar Industry. - Twenty percent (20%) of the total Value 
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Added Tax (V AT) proceeds collected on sugar and sugar by-products shall, accrue to and form 
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part of a special fund for the sugar industry which sha1l be made available solely to finance the 
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operation, programs and activities of the Sugar Regulatory Administration in pursuance of its 
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charter objectives 
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SEC. 3. Sugar Industry Research and Stabilization Fund. - For this purpose, the 
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proceeds as herein provided shall be set aside to constitute a fund known as the Sugar Industry 
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Research and Stabilization Fund which shall be paid out for the pnrpose herein stated. 
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SEC. 4. Separability Clause. - If any part or provision of the Act shall be held 
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unconstitutional or invalid, other provisions hereof which are not affected hereby shall continue 
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to be in full force and effect. 
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SEC. S. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, 
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administrative orders, and other issuance or parts thereof which are contrary to or inconsistent 
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herewith are hereby deemed repealed, amended or modified accordingly. 
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SEC. 6. Effectivity. - This shall take effect after fifteen (15) days from its publication in 
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the Official Gazette or in two (2) national newspapers of general circulation. 
Approved, 
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