NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
513
S. No.
o( ti!c sT-ri*tPi7»
‘22 JUL 13 P2 :09
Rl:CE!V£0 8V:
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER 
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION 
TO LEGAZPI CITY, ALBAY, PROVIDING FUNDS FROM THE ANNUAL 
VALUE-ADDED TAX COLLECTIONS, AMENDING FOR THE PURPOSE THE 
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
EXPLANATORY NOTE
On May 8, 1938f the unified system of railroad from San Fernando, La Union 
in the north to Legazpi City, Albay in the south was formally inaugurated. The 
interconnection provided by this railroad system facilitated effective and efficient 
transportation of people and goods that redounded to the development of the 
country's economy. However, it declined over the years due to natural disasters, 
informal settlers, lack cf support from the government, and other causes.
This measure seeks to reconstruct and rehabilitate the Philippine National 
Railways (PNR) rails from San Fernando in the province of La Union to Legazpi City 
in the province of Albay, by allocating to it five percent (5%) of annual value-added 
tax (VAT) collections. Such endeavors will not only revive the speedy transport 
between the northern and southern part of Luzon but will also create job 
opportunities through sustainable Infrastructure projects.


This measure was filed by Senator Ralph G. Recto in the 18th Congress.
In view of the foregoing, the immediate passage of this measure Is highly 
recommended.
RAMOiyBONG REVILLA, JR.


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
\
SENATE
s. No. 513
i rt "
C^ffiCF oi Ui: 5?'
'22 JUL 13 P2 :09
RHC£!V^3 3::
Introduced by SENATOR RAMON BONQ RE VILLA, JR.
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AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER 
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION 
TO LEGAZPI CITY, ALBAY, PROVIDING FUNDS FROM THE ANNUAL VALUE-
ADDED TAX COLLECTIONS, AMENDING FOR THE PURPOSE THE NATIONAL 
INTERNAL REVENUE CODE OF 1997, AS AMENDED 
•'•Al lUNAL
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. A new section, to be number two hundred eighty-seven (287), shaii 
be added to Chapter II, Title XI of the National Internal Revenue Code, as amended 
to read as follows:
"SEC. 287. DISPOSITION OF PROCEEDS OF 
VALUE-ADDED TAX. - A.) TWO AND A HALF PERCENT 
(2.5%) OF THE VALUE-ADDED TAX COLLECTED 
UNDER TITLE IV OF THIS ACT, AS AMENDED, SHALL 
BE ALLOCATED TO RECONSTRUCT AND 
REHABILITATE THE EXISTING 479-KILOMETER 
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN 
FERNANDO, LA UNION TO LEGAZPI CITY, ALBAY;
"B.) TWO AND A HALF PERCENT (2.5%) OF THE 
VALUE-ADDED TAX COLLECTED UNDER TITLE IV OF 
THIS ACT, AS AMENDED, SHALL BE COLLECTED FOR 
THE ACQUISITION OF ROAD RIGHT OF WAY NEEDED


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TO IMPLEMENT THE PROJECT MENTIONED IN THE 
PRECEDING PARAGRAPH.
"THE ALLOCATION SHALL BE ADMINISTERED 
BY THE DEPARTMENT OF TRANSPORTATION (DOTr), 
THROUGH ITS ATTACHED AGENCY PHILIPPINE 
NATIONAL RAILWAYS (PNR)."
Sec. 2. The succeeding Sections of the Nationai Internai Revenue Code, as 
amended, are hereby renumbered accordingly.
Sec. 3. Implementing Rules and Regulations. - The Department of Budget and
Management, in coordination with the Department of Finance, Bureau of Internal
Revenue, DOTr and PNR shail, within thirty (30) days from the effectivity of this Act,
promulgate the rules and regulations to effectively implement the provisions of this 
Act.
Sec. 4. Separability Clause. - If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision or part not otherwise 
affected shall remain valid and subsisting.
Sec. 5. Repealing Clause. - Ail laws, decrees, orders, rules and regulations or 
parts thereof inconsistent with this Art are hereby repealed or amended accordingly.
Sec. 6. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette ox in two (2) newspapers of general circulation.
Approved,