Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

“3628

House Bill No.

Introduced by Representative
LEODY “ODIE” F. TARRIELA

EXPLANATORY NOTE

On December 19, 2017, Republic Act No. 11469 or the Tax Reform
for Acceleration and Inclusion (TRAIN), was enacted for the purpose of
generating additional revenues to finance the Build, Build, Build and other
programs of the government. It was to ensure that the government is able
to provide for the needs of the people through the provision of better
infrastructure, health, education, jobs, and social protection. One of the
amendment under the TRAIN Law was the imposition of excise taxes on
almost petroleum products.

Due to the recent conflict between Russia and Ukraine, world crude
prices has risen to almost US$120 per barrel. As a result, local gasoline and
diesel prices jacked up to more than Php80.00 per liter. Furthermore, the
caused higher inflation rates which additional burden to our fellow
constituents who are already facing drastic decrease in household income,
if not joblessness, and other economic hardships, amidst the COVID-19
pandemic.

‘There was clamor for the government to control the spiraling of fuel
prices to prevent further rise in the prices of basic and other commodities.
Hence, this Representation’s proposed course of action was the imposition
of progressive rates for excise taxes on manufactured oils and other fuels,
as follows:


Unleaded premium gasoline, per liter of volume capacity:

SELLING PRICE EXCISE TAX
P 50.00 OR LESS P 10.00
P 50.01 TO P 55.0 P 9.00
P 55.01 TO P 60.00 P 8.00
P 60.01 TO P 65.00 P7.00
P 65.01 TO P 70.00 P 6.00
P 70.01 TO P 75.00 P 5.00
P 75.01 AND HIGHER P4.00

Diesel fuel oil, and on similar fuel oils having more or less the same
generating power, per liter of volume capacity:

SELLING PRICE EXCISE TAX
P 50.00 OR LESS P 6.00
P 50.01 TO P 55.0 P 5.50
P 55.01 TO P 60.00 P5.00
P 60.01 TO P 65.00 P 4.50
P 65.01 TO P 70.00 P 4.00
P 70.01 TO P 75.00 P 3.50
P 75.01 AND HIGHER P 3.00

Under the proposed scheme, there is gradual decrease of excise tax
rates as the fuel price increases which cushions the blow of the increase in
the selling prices of petroleum products.

It cannot be denied that there is a need to arrest the continuous and
drastic rises in the prices of petroleum products. It is necessary to protect
the welfare and alleviate the burden of the consuming public, still reeling
from the destructive effects of the COVID-19 pandemic. Nevertheless,
there is also a need for a stable source of income for the government,
especially as it jumpstarts an ailing economy.

It is in this view that the immediate passage of the bill is eamestly
sought.

HON. LI Y “ODIE” F. TARRIELA

Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

IETEENTH CONGRESS
First Regular Session

House Bill No. 362 8

INTRODUCED BY REPRESENTATIVE
LEODY “ODIE” F. TARRIELA

AN ACT

TO ARREST THE RISING COST OF PETROLEUM
PRODUCTS, PROTECT THE WELFARE AND
ALLEVIATE THE BURDEN OF THE CONSUMING
PUBLIC, BY IMPOSING PROGRESSIVE RATES ON
THE PAYMENT OF THE EXCISE TAXES ON
PETROLEUM PRODUCTS, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 8424, OR THE
NATIONAL INTERNAL REVENUE CODE AS
AMENDED BY REPUBLIC ACT NO. 11469, OR THE
TAX REFORM FOR ACCELERATION AND
INCLUSION (TRAIN) LAW, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

Section 1. Short Title. - This Act shall be known as the “Lower
Prices and Progressive Petroleum Excise Tax of 2022”.

See. 2. Declaration of Policy. — The State shall promote the welfare
and alleviate the burden of the consuming public. It shall be its duty to
arrest the rising prices of petroleum products, which leads to increases in

the prices of basic and other commodities and services. The State shall


continue to have a stable source of revenue as it jumpstarts an economy
ailed by the COVID-19 pandemic.

Sec. 3. Amendment of Section 148 of the National Internal
Revenue Code. — Section 148 of Republic Act No. 8424, otherwise known
as the National Internal Revenue Code of 1997, as amended by Section 43
of Republic Act No. 11469, otherwise known as the Tax Reform for
Acceleration and Inclusion (TRAIN) Act, is hereby further amended to
read as follows:

Sec. 148. Manufactured Oils and Other Fuels. -

There shall be collected on refined and manufactured mineral

oils and motor fuels, the following excise taxes which shall

attach to the goods hereunder enumerated as soon as they are

in existence as such:

Effective January} JULY 1, {2020} 2022
"Xxx

"() Unleaded premium gasoline, per liter of volume

capacity, [Fen-pesos-(P10.00)}:
SELLING PRICE EXCISE TAX
P-50.00 OR LESS P 10.00
P 50.01 TO P55.0 9.00
P 55,01 TO P 60.00 8.00

P 60.01 TO P 65.00 P 7.00


P 65.01 TO P 70.00 P 6.00

P 70.01 TO P 75.00 P5.00
P 75.01 AND HIGHER P 4.00
"(h) Xxx;

"(i) Diesel fuel oil, and on similar fuel oils having more
or less the same generating power, per liter of volume

capacity, [Six pesos-(P6.00)s}:

SELLING PRICE EXCISE TAX
P 50.00 OR LESS P 6.00

P 50.01 TO P 55.0 P5.50

P 55.01 TO P 60.00 P 5.00

P 60.01 TO P 65.00 P 4.50

P 65.01 TO P 70.00 P 4.00

P 70.01 TO P 75.00 P3.50

P 75.01 AND HIGHER P 3.00

XXx;

Sec. 4. Separability Clause. - If any provision of this Act is declared
unconstitutional or otherwise invalid, the validity of the other provisions
shall not be affected thereby.

Sec. 5. Repealing Clause. — All other laws, decrees, orders, rules
and regulations, other issuances, or parts thereof inconsistent with the

provisions of this Act are hereby repealed or modified accordingly.


Sec. 6. Effectivity. — This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general
circulation.

APPROVED.