Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousE BILL No.  8168
Introduced by Rep. Ray T. Reyes
EXPLANATORY NOTE
This  bill  seeks to  impose an  excise tax on  power generation  plants  that use
fossil  fuels   or  non-renewable  energy  sources,   and   increase  the  excise  tax  on
automobiles  to  increase  the  revenue  of the  government  for  the  implementation  of
Republic Act No.  11223, otherwise known as the Un/.versa/ Hea/th Care Act.
Contrary  to  the  goals  of  the   Paris  Agreement  to  limit  global  warming   by
reducing  emissions,  the  energy  consumption  worldwide,   including  energy-related
carbon   (C02)   emissions,   rose   strongly   in   2018.   As   a   signatory   to   the   Paris
Agreement,   the   Philippines   undertook   a   conditional   commitment   to   reduce   its
greenhouse  gas   emissions  by  70%   from  energy,   transport,  waste,   forest,   and
industry sectors by 2030.
One of the effective ways of reducing emissions  is to tax polluting sources of
energy such as fossil fuel-based  power plants that utilize  coal,  natural gas,  and  oil.
These  power plants  remain the  primary source of power generation  in the country,
contributing  77.6°/o  of the  country's  total  electricity  production  in  2021.  The  private
generation   companies   owning   these   power   plants   are   only  taxed   as   ordinary
corporations  under the  National  Internal  Revenue Code.  Thus,  this  bill  proposes to
impose  an  excise  tax  on  power  generation  plants  that  utilize  fossil  fuels  or  non-
renewable energy sources.
Likewise,   one   of  the   polluting   sources   of  greenhouse   gas   emissions   is
automobiles powered  by internal combustion engine, which produce methane  (CH4)
and  nitrous  oxide  (N20)  apart  from  C02.  Thus,   it  is  proposed  under  this  bill  to
increase the tax on automobiles.


Taxing  the sources  of greenhouse  gases will  mitigate  the  effects  of climate
change,    including   climate-sensitive   health   risks   such   as   heart-related   illness,
respiratory illness and water-borne diseases, among others.
This   bill   seeks  to   advance   health   equity   by  generating   revenue   for  the
government, which is proposed to finance the implementation of the Universal Health
Care Act. With additional  budget, the objectives of the Universal  Health  Care Act to
promote  the   Filipinos'  right  to  health,  equitable  access  to  quality  and   affordable
health care,  and healthy living conditions will be realized.
Further,  this  proposed  bill will  lead to improved  use of alternative energy and
more   remarkable   sustainable   development   outcomes   similar   to   the   impact   of
increased  excise  taxes   on  coal  and   petroleum   under   Republic  Act  No.   10963,
other\wiise known as the Tax Reform for Acceleration and Inclusion (TRAIN). Thiis w.NI
also   support  the   revenue   streams   under  the   Universal   Health   Care   Act  from
premiums    paid    by    direct    contributors    and    direct    government   funding    and
appropriations.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
Represen tatIve,AnakalFsugamrty-Llst


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousE BILL No.  8166
Introduced by Rep. Ray T. Reyes
AN ACT
IMPOSING AN EXCISE TAX ON POWER GENERATloN PLANTS THAT USE
FOSSIL FULES OR NON-RENEWABLE ENERGY SOURCES AND INCREASING
THE EXCISE TAX ON AUTOMOBILES, AIVIENDING FOR THE PURPOSE THE
NATIONAL INTERNAL REVENUE CODE, AS AMENDED
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled..
SECTION 1.   A new section denominated  as Section  148-8 is hereby inserted  after
Section  148-A  of  the  National  lntemal  Revenue  Code,  as  amended,  to  read  as
follows:
"SEC.  148-8.  -  POWER  GENERATION  PLANTS.  -THEF{E
SHALL  BE  LEVIED,  ASSESSED,  AND  COLLECTED  AN  EXCISE
TAX    OF    ONE    PESO    (P1.00)    PER    KILOWATT    OF    POWER
PRODUCED   BY   POWER  GENERATION   PLANTS  THAT   UTILIZE
FOSSIL FUELS OR  NON-RENEWABLE  ENERGY SOURCES SUCH
AS     COAL,     NATURAL     GAS     AND     OIL-BASED     MATERIAL,
INCLUDING  COMBINED CYCLE,  DIESEL,  GAS TURBINE AND  OIL
THERMAL.
THE    SECRETARY    OF    FINANCE    IS    AUTHORIZED    TO
ADJUST   THE   COST   OF   EXCISE   TAX   UNDER   THIS   SECTloN
BASED     ON     THE     RECOMMENDATION     OF     THE     ENERGY
REGULATORY COMIvllssION.
SECTION  2.  Section  149  of the  National  Internal  Revenue  Code,  as  amended,  is
further amended to read as follows:


"SEC.  149.    Automobi-/es.  -  There  shall  be  levied,  assessed
and   collected   an   ad   valorem   tax   on   automobiles   based   on   the
manufacturer's  or  imporfer's  selling  price,   net  of  excise  and  value-
added tax, in accordance with the following schedule:
Effective January 1, [2048] 2024
"Net manufacturer's price/importer's selling
Rate
price
``Up     to     Six     hundred
thousand
Pesos
[EeuF     peFeent     (40,'o)]     FIVE
((P600,000.00)
PERCENT (5%)
``Over      Six      hundred
thousand
Pesos
FTeF]  PeFGent (10%)I  FIFTEEN
(P600,000.00)      to      One
million
Pesos
PERCENT(150/a)
(1,000,000.00)
"Over   One   million   (P1,000,00.00)   to   Four T`. i^r`A.         n]ar^a n+         /.no/_ \
`  ```,```,             \,`.` `,`-1 ``            \L`,  'Vl
million pesos (P4,000,000.00)
TWENTY-F IVE        PERC ENT
(250/.)
"Over Four million pesos (P4,OOO,000.00)
[Fifty'     peFGeF]t     (50%)]SIXTY
PERCENT (60%)
"Prov/.ded,  That  hybrid  vehicles  shall  be subject to fifty  percent
(50°/o)  of  the  applicable  excise  tax  rates  on  automobiles  under  this
Section:  Provi.ded,  further,  That  purely  electric  vehicles  and  pick-ups
shall be exempt from excise tax on automobiles.
"XXX."
SECTION  3. A new section  denominated  as Section 288-8 is hereby inserted  after
Section  288-A  of  the  National  Internal  Revenue  Code,  as  amended,  to  read  as
follows:
``SEC. Z88-B.  -  DISPOSITION  OF  REVENUES  FROM
EXCISE       TAX       ON       AUTOMOBILES       AND       POWER
GENERATION PLANTS USING NON-RENEWABLE ENERGY.
-    THE     PROVISIONS    OF     EXISTING     LAWS    TO    THE
CONTRARY   NOTWITHSTANDING,   FIFTY   PERCENT   (50%)
OF  THE  REVENUES  COLLECTED  FROM  THE  EXCISE  TAX
ON AUTOMOBILES AND  ONE  HUNDRED  PERCENT  (100°/a)
OF  THE  REVENUES  COLLECTED  FROIVI  THE  EXCISE  TAX
ON      POWER      GENERATION      PLANTS      USING      NON-
RENEWABLE   ENERGY  SHALL  BE  ALLOCATED  TO  THE
PHILIPPINE        HEALTH        INSURANCE        CORPORATloN
(PHILHEALTH)    TO    BE    USED    EXCLUSIVELY    FOR   THE
IMPLEIVIENTATION      OF      REPUBLIC      ACT      NO.      11223,
OTHERWISE KNOWN AS THE "UW/VERSAL HEALTH CARE
Acr.,,


SECTION 4. All laws, decrees, orders,  and  issuances, or portions thereof, which are
inconsistent  with  the   provisions   of  this  Act,   are   hereby  repealed,   amended   or
modified accordingly.
SECTloN  5.  This  Act  shall  take  effect fifteen  (15)  days  after  its  publication  in  the
Offi.c/.a/ Gazeffe or in a newspaper of general circulation.
Approved,