Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8558

House Bill No.

Introduced by Representative John Marvin “Yul Servo” C. Nieto

EXPLANATORY NOTE:

As a manifestation of support to this timely piece of legislation, this
representation respectfully refiles this bill, which has constantly been receiving
support from the past and present Congress.

It has been well established that the use of plastic bags is harmful to the
environment. The worsening situation in terms of plastic use has been
contributing immensely to the flooding issue here in the country, especially in
Metro Manila. Moreover, the worsening situation in terms of plastic use has also
been well documented to immensely harm animals, especially sea creatures.

The proposed measure aims to impose excise tax on plastic bags used in
supermarkets, malls, shops, stores, sales outlets, and other similar
establishments. It is the hope of the proposed measure that by introducing such
levy, consumers will be encouraged to use environment-friendly alternatives to
plastic bags. It is by no means that this will singlehandedly address the issue at
hand, but it is surely among the different policy actions that can strengthen the
promotion of environment-friendly practices.

In view of the foregoing, passage of this measure is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8558
House Bill No.

Introduced by Representative John Marvin “Yul Servo” C. Nieto

AN ACT IMPOSING EXCISE TAX ON PLASTIC BAGS USED IN
SUPERMARKETS, MALLS, SHOPS, STORES, SALES OUTLETS AND OTHER
SIMILAR

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 "Plastic Bag Tax
Act.”

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the
State to protect and advance the right of the people to a balanced and healthful
ecology in accord with the rhythm and harmony of nature through, among
others, the proper exercise of its power of taxation.

SECTION 3. Imposition, Rate and Persons Liable. - There shall be levied,
assessed and collected an excise tax in the amount of Ten Pesos (PhP 10.00),
against customers at the point of sale of goods or products for every plastic bag
provided by supermarkets, malls, shops, stores, sales outlets and other similar
establishments for the carrying of said purchased goods or products. The excise
tax shall be imposed at the abovementioned establishments whose gross
receipts in the preceding year exceeded One Hundred Thousand Pesos
(Php100,000.00) or, for newly registered businesses, a capitalization of at least
One Hundred thousand Pesos (Php100,000.00).

SECTION 4. Exemptions. - Plastic bags used as “original packaging" of the
following products are exempted from the coverage of Section 2:

. Fresh fish and fish products;
. Fresh meat and meat products;
. Fresh poultry and poultry products;
. Fruits;
. Vegetables;
Nuts;

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g. Confectionery;
h. Dairy products;

i, Cooked food; and
j. Ice

For purposes of this Section, "original packaging" shall mean an enclosed plastic
bag in which loose produce is placed by the manufacturer and/or producer for
transporting, warehousing, logistics, sale and/or end-use.

Except for the abovementioned plastic bags used as "original packaging", all
other plastic bags provided by supermarkets, malls, shops, stores, sales outlets
and other similar establishments shall be taxed.

SECTION 5. Collecting Agent. - The owners of supermarkets, malls, shops,
stores, sales outlets and other similar establishments, or their authorized
representatives shall act as the collecting agent of the government.

SECTION 6. Itemization of tax. - The imposition of the excise tax shall be
itemized on the corresponding invoice, receipt or docket issued to the customer.

SECTION 7. Return and Payment of tax. - The owner and/or any
accountable person of the establishment concerned shall, together with its
income tax return, file a full and true return, in such form as may be specified
by the Commissioner of the Bureau of Internal Revenue (BIR), of the amount of
excise tax which became payable by him or her during the applicable
accounting period. The amount shall be paid upon filing of the same return.

SECTION 8. Inventory of Plastic Bags. - A record containing the following,
among others, shall be accomplished:

a. Number of plastic bags, other than those exempted under Section 3, in
stock before the commencement of business, thirty (30) days after the
approval of this Act;

b. Number of plastic bags exempted under Section 3 in stock before the
commencement of business, thirty (30) days after the approval of this
Act;

c. Number of plastic bags, other than those exempted under Section 3,
purchased by the establishment concerned during each accounting
period; and

d. Number of plastic bags, other than those exempted under Section 3,
provided to customers in each accounting period

The record, together with all other supporting books and documents, shall be
retained for a period of five (5) years and subject to examination by the
Commissioner.


SECTION 9. Non-Payment of Excise Tax. - Non-payment of the excise taxes
imposed under this Act shall be subject to the pertinent provisions of the
National Internal Revenue Code of 1997, as amended, regarding collection of
unpaid taxes and imposition of corresponding fines, surcharges and penalties,
and imprisonment and/ or closure of business.

SECTION 10. Implementing Rules and Regulations. - The Secretary of the
Department of Finance (DOF), upon the recommendation of the Commissioner
of the BIR, shall, within sixty (60) days from the effectivity of this Act,
promulgate rules and regulations to faithfully implement the intent and
provisions of this Act: Provided, that the failure of the Secretary of the DOF to
do so shall not prevent the implementation of this Act upon its effectivity.

SECTION 11. Separability Clause. - If any provision of this Act is
subsequently declared invalid or unconstitutional, other provisions hereof which
are not affected thereby shall remain in full force and effect.

SECTION 12. Repealing Clause. - All other laws, acts, presidential decrees,
executive orders, issuances, presidential proclamations, rules and regulations or
Parts thereof which are contrary to and inconsistent with any provision of this
Act are hereby repealed, amended or modified accordingly.

SECTION 13. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication either in the Official Gazette, or in at least one (1)
newspaper of general circulation.

Approved,