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Republic of the Philippines 5 )
HOUSE OF THE REPRESENTATIVE! RECEWVED
Quezon City pare, UL 4
EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 1517

Introduced by REPRESENTATIVES ALFREDO A. GARBIN, Jr. and
ELIZALDY S. CO

EXPLANATORY NOTE

This bill seeks to regulate the use of firecrackers by imposing excise taxes
‘on the sale thereof.

Notwithstanding the continuous and rigorous efforts of the Department of
Health (DOH), Philippines National Police (PNP), and the media to warn the public
about the dangers of fireworks, and to implement Republic Act No. 7183 or the Act
Regulating the Sale, Manufacture, Distribution, and Use of Firecrackers and other
Polytechnic Devices, the number of deaths and injuries each year, caused by
firecrackers remain alarmingly high.

In January of this year, the Department of Health-Epidemiology Bureau
(DOH-EB) reported that the number of fireworks-related injuries reached 839.
While the injuries were reportedly less serious in nature than that of previous
years, the number is still high. The DOH, the PNP, and other concerned
government agencies, have suggested other ways of regulating the sale and use
of fireworks and other similar devices.

The injuries, deaths, and destruction of property must be prevented by
regulating the sale and use of firecrackers and fireworks. By exercising the power
of taxation on the sale of firecrackers, Congress will be able to minimize, if not put
an end, to the use of dangerous firecrackers.

The legislature has the inherent power to select the subjects of taxation and
to grant exemptions. Taxation may also be made the implement of the state's
police power (Lutz v. Araneta, GR. No. L-7859, 1955; Planters Products, Inc., v.
Fertiphil Corporation, G.R. No. 166006, 2008). Police power is the capacity of the
government to regulate behavior and enforce ojder within their territory for the
betterment of the general welfare, morals, health and safety.

In view of the above circumstances, the swift passage of the bill is earnestly

sought.
ALFREDO IN Jr. Os, s.co


Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 1517

Introduced by REPRESENTATIVES ALFREDO A. GARBIN, Jr. and
ELIZALDY S. CO

AN ACT
PROVIDING FOR AN EXCISE TAX ON THE SALE OF FIRECRACKERS AND
FIREWORKS, AMENDING THEREFOR REPUBLIC ACT NO. 8242, OTHERWISE
KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF 1997, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
Section 1. Chapter VI — Excise Tax on Miscellaneous Articles, under Title VI of the
National Internal Revenue Code of 1997 is hereby amended to read as follows:
“SECTION 150-A. FIREWORKS AND FIRECRACKERS. ~ THERE SHALL
BE LEVIED, ASSESSED AND COLLECTED, AGAINST PURCHASERS, A
TAX EQUIVALENT TO TWENTY-PERCENT (20%) BASED ON THE
MANUFACTURER'S SELLING PRICE, NET OF EXCISE TAX AND VALUE
ADDED TAX OF FIREWORKS AND FIRECRACKERS.
A. DEFINITION OF TERMS.
(1) FIREWORKS WHICH SHALL MEAN ANY COMPOSITION OR
DEVICE THAT IS DESIGNED TO PRODUCE A VISIBLE
EFFECT BY COMBUSTION, EXPLOSION, DEFLAGRATION,
« OR DETONATION, BY COMBINING OR USING ANY
COMBUSTIBLE OR EXPLOSIVE SUBSTANCE, OR ANY
SUBSTANCE WHICH WHEN COMBINED WITH OTHER
SUBSTANCE OR ARTICLE, PRODUCES A VISIBLE EFFECT;
AND
(2) “FIRECRACKERS” WHICH SHALL MEAN ANY
COMPOSITION OR DEVICE THAT IS DESIGNED TO
PRODUCE A AUDIBLE EFFECT BY COMBUSTION,
EXPLOSION, DEFLAGRATION, OR DETONATION, BY
COMBINING OR USING ANY COMBUSTIBLE OR


EXPLOSIVE SUBSTANCE, OR ANY SUBSTANCE WHICH
WHEN COMBINED WITH OTHER SUBSTANCE OR
ARTICLE, PRODUCES AN AUDIBLE EFFECT.
B. EXEMPTED DEVICES. THIS SECTION SHALL NOT APPLY TO
DEVICES USED FOR THE FOLLOWING:
(1) MARINE, RAILROAD, OR AVIATION PURPOSES;
(2) RADIO, TELEVISION, FILM, THEATER PRODUCTIONS,
ATHLETIC EVENTS;
(3) INDUSTRIAL PURPOSES; AND
(4) GOVERNMENT, MILITARY PURPOSES
©. THE EXCISE TAX IMPOSED BY THIS SECTION SHALL BE
COLLECTED BY THE FIREWORKS OR FIRECRACKERS
DEALER, RETAILER, OR SELLER, FROM THE FIREWORKS
OR FIRECRACKERS CONSUMER OR PURCHASER.
D. THE FIREWORKS OR FIRECRACKERS DEALER, RETAILER,
OR SELLER SHALL BE RESPONSIBLE FOR THE
COLLECTION OF THE TAX AND THE PAYMENT OF THE TAX
TO THE COMMISSIONER.
—. THE TAX ADVANCED AND PAID BY THE DEALER, RETAILER,
OR SELLER AS PROVIDED IN THIS SECTION SHALL BE
ADDED TO AND COLLECTED AS PART OF THE SALES PRICE
OF THE CONSUMER FIREWORKS SOLD OR DISTRIBUTED.
THE AMOUNT OF THE TAX SHALL BE STATED SEPARATELY
FROM THE PRICE OF THE FIREWORKS OR
FIRECRACKERS.”
Section 2. Implementing Rules and Regulations. The Secretary of Finance
shall, upon the recommendation of the Commissioner of Internal Revenue,
promulgate the necessary rules and regulations to implement the provisions of this,
Act.
Section 3. Repealing Clause. All laws, decrees, ordinances, rules, and
regulations, executive or administrative orders,* and such other presidential
issuances which are inconsistent with any of the provisions of this Act are hereby
repealed, amended or otherwise modified accordingly.
Section 4. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general

circulation, whichever comes earlier.

Approved,


http://www.doh.gov.ph/node/3782