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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 15:1 a 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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SEP -5 P 1 :55 
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 arresto 
mayor and a fine not exceeding Php 500 pesos for its violation. Considering the 
gravity of the crime, the imposable fine not exceeding Php 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 Php 769,496.70 pesos. 
Thus, this bill seeks to regularly index fines to adjust to inflation to ensure 
the efficacy of penal provisions imposing fines in Philippines laws. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 1 5 ,1 0 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
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SEP -5 P 1 :55 
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 "Indexation of 
Fines Act of 2013". 
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. Definitions. - 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. Indexation 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 L1ntil 
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 (1+i)t, 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 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 Index of Fines. - The NEDA shall compute, publish, and 
disseminate an Annual Index 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. 
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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 public,ation either in the Official Gazette or in a 
newspaper of general circulation in the Philippines. 
Approved,