FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES) 
Second Regular Session 
SENATE 
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SEP -8 i\ 9 :57 
Introduced By: Senator Antonio "Sonny" F. Trillanes IV 
It cannot be denied that the Petroleum industry is imbued with public interest. 
Virtually all aspects of the economic and social life of the nation are affected by the 
unabated increase in the prices of petroleum products. 
Our problem is that, under the current deregulation law, Government is virtually 
helpless in checking the apparent abuses by petroleum industry players in increasing 
and/or refusing to decrease of petroleum products even when warranted by market 
forces. 
The situation is aggravated by the lack of transparency in the formula used by 
petroleum companies in order to arrive at their prices and the apparent 
incompetence and/or indifference of the officials of the Department of Energy (DOE) 
in addressing the situation. The consuming public is virtually at the mercy of the oil 
industry cartel, which has gleefully taken advantage situation at the expense of 
entire populace. 
This Act is intended to set the allowable level of profit for companies in the 
petroleum industry and impose a "windfall profits tax" on petroleum companies in 
order to discourage them from engaging in excessive profiteering. The imposition of 
the tax is likewise intended as well as a mode of recouping the excess profits earned 
by said corporations at the expense of the public and of redistributing the said 
excess profits to the public in the form of public services. 
It is the hope of the author that this will help "moderate the greed" of petroleum 
companies and provide much-needed relief to our overburdened citizens. 
Hence, I earnestly request our colleagues both in the Senate and the House of 
Representatives to join me in pushing for the immediate passage of this proposed 
measure. 
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ANTONIO "SONNY" F. TRILLANES IV 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
S.B. NO. 2959 
AN ACT 
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SEP -8 
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II:! .) 
DECLARING THE PETROLEUM INDUSTRY TO BE AFFECTED WITH PUBLIC INTEREST, 
SETIING THE ALLOWABLE LEVEL OF PROFIT FOR PETROLEUM COMPANIES, 
IMPOSING A WINDFALL PROFITS TAX ON PETROLEUM COMPANIES AND FOR 
OTHER RELATED PURPOSES 
Introduced By: Senator Antonio "Sonny" F. Trillanes IV 
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: "Petroleum 
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Windfall Profits Tax Act of 2011". 
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Sec. 2. Statement of Policv. - It is hereby declared the policy of the State to 
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consider the petroleum industry to be affected with public interest. Accordingly, the 
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State shall regulate the levels of permissible profits companies operating in the 
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petroleum industry shall be allowed to make and shall impose a windfall or excess 
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profit tax on profits made in excess thereof. 
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Sec. 3. Permissible Level of Profit. -
Companies engaged in the petroleum 
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industry, including companies engaged In the importation, refining, processing, 
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transportation, storage, distribution and retail of petroleum products shall be 
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allowed to make a reasonable return on their capital or investment but not to 
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exceed Twelve Percent (12%) of their Paid-Up Capital per year. 
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Sec. 4. 
Petroleum Windfall Profits Tax. -
Companies engaged in the 
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petroleum industry whose Net Profit exceed Twelve Percent (12%) of their Paid-Up 
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Capital per year shall pay a windfall profit tax at the following rates: 
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(a) Profits in excess of Twelve Percent (12%) but not more than Twenty 
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Percent (20%) of the Paid-up Capital of the Company- Fifty Percent 
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(50%) ofthe amount of Profit in excess ofTwelve Percent (12%); 
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(b) Profits in excess of Twenty Percent (20%) of their Paid-up Capital of the 
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Company - Eighty Percent (80%) of the amount of Profit in excess of 
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Twenty Percent (20%). 
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It is understood that the Profits of petroleum companies not exceeding the threshold 
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amount of Twelve Percent (12%) of their Paid-Up Capital shall be subject only to the 
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regular corporate income tax and other imposed by the National Internal Revenue 
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Code. 
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SEC. 5. 
Implementing Rules and Regulations. - The Bureau of Internal 
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Revenue (BIR), in consultation with the Department of Finance (DOF) shall 
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promulgate the necessary rules and regulations to implement this Act within thirty 
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(30) days from the enactment hereof. 
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SEC. 6. Repealing Clause. - All laws, decrees, executive orders, rules and 
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regulations, issuances or any part thereof inconsistent with the provisions of this Act 
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are hereby repealed or amended accordingly. 
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SEC. 7. Effectivitv. - This Act shall take effect fifteen (15) days following its 
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publication in the Official Gazette or in at least two (2) national newspapers of 
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general circulation. 
Approved, 
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