Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Ensuring crop and aquaculture productivity is not only essential to economic 
growth in the country’s agricultural and fisheries sector but also key to sustaining 
food security.  
Although pesticides and chemical fertilizers aid in enhancing crop production and 
protection from adverse weather conditions, harmful tradeoffs such as waterways 
pollution, chemical burns, increased air pollution, soil acidification and mineral 
depletion have also been scientifically observed and established.  
Under Article II, Section 16 of the 1987 Constitution of the Republic of the 
Philippines, the State is mandated “to protect and advance the right of the people 
to a balanced and healthful ecology in accord with the rhythm and harmony of 
nature.” Section 15 of the same article also mandates the State to “protect and 
promote the right to health of the people.” 
In a study published by the Japanese Association of Rural Medicine, data gathered 
from the National Poison Control and Management Center (NPCMC), the 
Philippine General Hospital, De La Salle Medical Center, and other hospitals, 
suggest that from 2006 to 2010, the number of pesticide poisoning cases, including 
mortality rates caused by pesticide poisoning has steadily risen. Pesticide 
exposure, work practices, and pesticide residues in the immediate environment 
were identified as common risk factors among these cases. 
Similar hazards to public health and the environment have also been associated 
with chemical fertilizers. Runoffs and residues from these chemicals that contain 
nitrogen and phosphorus have been shown to create an overabundance of 
nutrients in waterways and soil water that reduces oxygen content. In the long run, 
chemical fertilizers deplete the soil’s essential nutrients, vitamins, and mineral 
August 9, 2022
8:00 am
3370


 
2 
content making it less conducive for crop production. Data from the United States 
Department of Agriculture Nutrient Data Laboratory (US-DANDL) demonstrate that 
food grown in chemically fertilized soils were found to have less magnesium, 
potassium, and calcium content.  
 
Meanwhile, excessive fertilizer use has been documented to turn leaves yellow or 
brown, damaging the plant and reducing crop yield. In addition, the use of nitrogen 
in excess of what plants and crops can readily absorb during crop fertilization has 
been shown to contribute to the release of greenhouse gases such as carbon 
dioxide and nitrous oxide into the atmosphere.   
 
In recent years, environmental taxation has become a key instrument of State 
authorities in reducing or even eliminating environmental and health hazards. 
Taxation creates incentives and disincentives for economic agents to change their 
behavior.  
 
In the context of pesticides and chemical fertilizers, taxation will decrease market 
demand for these hazardous products. From an environmental point of view, a tax 
will be beneficial since it will eliminate the mismatch between market prices and 
social costs. An adjustment of this mismatch will lead to decreased production and 
consumption of the environmentally degrading product.  
 
Under this law, an Environmental Tax on Pesticides and Chemical Fertilizers 
(ETPCF) shall be imposed equal to three percent (3%) of the wholesale price 
per kilogram of the pesticides and chemical fertilizers defined herein. The 
EPTCF shall cover domestic manufacturers and importers where pesticides and 
chemical fertilizers are sold for agriculture and other commercial purposes.  
 
Through this "Pesticide Tax Act", the Philippine government will not only be 
fulfilling its constitutional mandate to promote the health of the people and the 
ecology and to regulate potential public hazards but will also be contributing to 
the growing global campaign towards a more mindful human relationship with 
the environment and its finite resources.   
In view of the foregoing, the immediate approval of this bill is earnestly sought. 
  
 
 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.        MIGUEL LUIS R. VILLAFUERTE   
 
 
 
 
TSUYOSHI ANTHONY G. HORIBATA  
 
     NICOLAS ENCISO VIII 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT IMPOSING ENVIRONMENTAL TAX ON PESTICIDES AND 
CHEMICAL FERTILIZERS 
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 “PESTICIDES AND 
CHEMICAL FERTILIZERS TAX ACT”. 
SECTION 2. Declaration of Policy. – It is a declared policy that the State shall 
protect and promote the right to health of the people and instill health 
consciousness advancing a balanced and healthful ecology according to the 
rhythm and harmony of nature. The State shall also attain and maintain a balance 
between agri-economic development and environmental protection. 
Thereby, the state shall promote means that will preserve a healthy environment 
not only for the present generation, but also for those to come — generations who 
should be inheriting a rejuvenated earth capable of sustaining life. 
The right to a balanced and healthful ecology carries with it the correlative duty to 
refrain from impairing the environment. 
3370


 
4 
 
SECTION 3. Definition of Terms. – For purposes of this Act, the following 
definitions shall apply to the following terms: 
a. Active Substance - are the chemical ingredients in pesticide 
products that shall include but not be limited to the following: Acephate 
(2,4-D), Acid Copper Chromate, Alkaline Copper Quaternary, Arsenic, 
Bacillus thuringiensis (Bt), Bendiocarb, Bifenthrin, Boric Acid, 
Bromadiolone, Bis-(N-cyclohexyldiazeniumdioxy-copper, Capsaicin, 
Captan, Carbaryl, Chlordane, Chlorpyrifos, Chromated Copper 
Arsenate, 
Chromium, 
Copper 
Azole, 
Copper 
Sulfate, 
Creosote,Cyproconazole,  
Cyfluthrin, 
D-phentorin, 
DDT, 
DEET, 
Deltamethrin, Diatomaceous earth, Diazinon, Dicamba, Fipronil, 
Glyphosate, 
Hexaflumuron, 
Hydramethylnon, 
Hydroprene, 
Imidacloropid, 
Iron 
Phosphate, 
Lambda-cyhalothrin, 
Malathion, 
Methoprene, 
Methyl 
bromide, 
MGK-264, 
Naled, 
Napthalene, 
Paradichlorobenzene, 
Pentachlorophenol, 
Permethrin, 
Picardin, 
Piperonyl 
Butoxide, 
Potassium, 
Propiconazole, 
Pyrethrins, 
Pyriproxyfren, Resmethrin, Spinosad, Sulfur, Sulfuryl Flouride, Triclopyr, 
Zinc Phosphide, Zinc Sulfate. 
 
b. Active ingredient -  are the chemical substance in chemical fertilizers 
that shall include but not be limited to the following:  Nitrogen, Urea, 
Ammonium sulphate, Ammonium Chloride, Calcium Ammonium Nitrate, 
Phosphorus, 
Singlesuper 
phosphate, 
Triplesuper 
phosphate, 
Potassium, Calcium, Sulfur, Iron, Manganese, Zinc, Boron and 
Molybdenum. 
 
c. Chemical Fertilizers - are compounds containing high concentration of 
nutrients required for plant growth applied in the soil. It is classified as 
Nitrogenous fertilizers, Phosphatic fertilizers and Complex and mixed 
fertilizers  


 
5 
d. Pesticides - are substances that prevent, destroy, repel, or reduce the 
severity of pests. Pesticides include: Algicides, Antifouling, Fungicides, 
Fumigants, Herbicides, Insecticides, Mollusicides, Nematicides  and 
Rodenticides 
 
e. Domestic Manufacturers and Importers - any person or group of 
persons engaged in manufacturing and importation of pesticides and 
chemical fertilizers 
 
f. Organic - this law shall adopt the definition provided for under Republic 
Act No. 10068 “Organic Agriculture Act of 2010”  to wit: 
 
“Organic refers to the particular farming and 
processing system, described in the standards and 
not in the classical chemical sense. The term 
"organic" is synonymous in other languages to 
"biological" or "ecological". It is also a labeling term 
that denotes products considered organic based on 
the Philippine National Standards for organic 
agriculture.” 
 
g. Organic Agriculture - this law shall adopt the definition provided for 
under Republic Act No. 10068 “Organic Agriculture Act of 2010” to 
wit: 
 
“Organic agriculture includes all agricultural systems 
that promote the ecologically sound, socially 
acceptable, economically viable and technically 
feasible production of food and fibers. Organic 
agricultural dramatically reduces external inputs by 
refraining from the use of chemical fertilizers, 
pesticides and pharmaceuticals. It also covers areas 
such as, but not limited to, soil fertility management, 
varietal breeding and selection under chemical and 
pesticide-free conditions, the use of biotechnology 
and other cultural practices that are consistent with 
the principles and policies of this Act, and enhance 
productivity without destroying the soil and harming 


 
6 
farmers, consumers and the environment as defined 
by 
the 
International 
Federation 
of 
Organic 
Agricultural Movement (IFOAM): Provided, That the 
biotechnology herein to shall not include genetically 
modified organisms of GMOs.” 
 
h. Organic/Compost Fertilizers - are fertilizers derived from animal 
matter, animal excreta (manure), human excreta and vegetable matter. 
 
i. Organic Pesticides - are pesticides made from naturally occurring 
substances or self-made mixtures. 
 
SECTION 4. Amount of Environmental Tax. – The amount of Environmental 
Tax on Pesticides and Chemical Fertilizers (ETPCF) shall be equal to 3% of the 
wholesale price per kilogram of any of the pesticides and chemical fertilizers 
mentioned under Section 3 paragraphs c and d of this Act containing any of the 
active substance and ingredient included in the enumeration provided for in 
Section 3 paragraphs a and b. The following formula shall be used for computing 
the tax:   
ETPCF = 3% of wholesale price per kilogram  x  total 
kilogram of pesticides and chemical fertilizer sold 
 
SECTION 5. Coverage and Fees. – ETPCF shall be imposed on the domestic 
manufacturers and importers where pesticides and chemical fertilizers are sold for 
agriculture and other commercial purposes.  
 
SECTION 6. Exemptions. – This Act shall exempt: 
a. 
any person or group of persons that are engaged in organic agriculture; 
b. 
any domestic manufacturers and importers of organic pesticides and 
organic fertilizers. 
 
SECTION 7. Disposition of Revenues Collected. – All revenues collected under 
this Act shall be earmarked solely and used exclusively for the following purposes: 


 
7 
a. 
Providing programs to assist agricultural workers in transitioning to organic  
  
agriculture and production systems. 
b. 
Providing effective rural productivity enhancement programs. 
c. 
Improving resiliency of agricultural infrastructures. 
d. 
Investing on wildlife conservation. 
e. 
Environmental and health programs of the government.  
 
SECTION 8. Implementing Rules and Regulations. – The Department of 
Finance (DoF) in coordination with Department of Agriculture (DA), the Fertilizer 
and Pesticide Authority (FPA) under the Office of the President (OP), the 
Department of Environment and Natural Resources (DENR) and Department of 
Budget and Management (DBM) shall promulgate not later than thirty (30) days 
upon the effectivity of this Act the necessary rules and regulations for its effective 
implementation.  
 
SECTION 9. Separability Clause. – If any section or part of this Act is 
unconstitutional or invalid, the other sections or provisions no other affected shall 
remain in full force and effect.  
 
SECTION 10. Repealing Clause. – All laws, decrees, executive orders, rules and 
regulations, issuances are any part thereof inconsistent with the provisions are 
hereby repealed, amended or modified accordingly. 
 
SECTION 11. Effectivity. – This act shall take effect fifteen (15) days after 
publication either in the Official Gazette or in at least two (2) national newspapers 
of general circulation. 
 
Approved.