Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

House Bill No, 1811

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
IMPOSING EXCISE TAX ON PLASTIC BAGS, THEREBY ADDING A
NEW SECTION, DESIGNATED AS SECTION 150-C, IN THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED,
AND FOR OTHER PURPOSES.

EXPLANATORY NOTE

The Philippines ranked third as the world’s largest contributor to plastic pollution with
2.7 to 5.5 million metric tons of plastic waste generated each year, of which 20% is reported to
leak into the ocean, In the absence of policy intervention, plastic waste in the Philippines is
expected to almost double to 9 million metric tons by 2040 and reach over 11 million metric
tons by 2060.

Plastic pollution posts a major threat to the environment and the lives of millions of
Filipinos. Plastic wastes found in the ocean impose severe danger to both marine wildlife and
the livelihood of people who rely on nature-dependent sectors such as tourism and the fishing
industry. Waste thrown into waterways contributes to frequent flooding which compromises
the safety and sanitation of residents in coastal and low-lying areas. Moreover. plastics also
worsen the climate crisis through the release of greenhouse gases during production which
place vulnerable populations further at risk

In response to these growing concerns, this proposed measure, to be known as the
“Plastic Bags Tax Act” was approved on Third Reading in the 18th Congress under the
leadership of this representation, This proposed measure seeks to impose an excise tax of
Twenty Pesos (P20.00) for every kilogram of plastic bag removed from the place of production
or released from the custody of the Bureau of Customs. The bill also provides for a 4% increase
in excise tax rates starting CY 2026 and every year thereafter. Furthermore, the bill proposes
to allocate the proceeds from the excise tax on plastic bags for the implementation of the solid
waste management plans of the National Government,

Through such imposition, it is hoped that consumers will be encouraged to use
environment-friendly alternatives to plastic bags. Furthermore. the Department of Finance

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estimated that the measure will yield P923 million additional revenues annually, which could
be used to finance programs and projects to counter the harmful effects of plastic pollution in
the country.

In view of the foregoing, the passage of this measure is eanestl

JOEY ZARTE.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

House Bit No,_2811_

Introduced by Representative JOLY SARTE SALCEDA

AN ACT
IMPOSING EXCISE TAX ON PLASTIC BAGS, THEREBY ADDING A
NEW SECTION, DESIGNATED AS SECTION 150-C, IN THE
NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED,
AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the “Plastic Bags Tax Act.”
SEC. 2. Declaration of Policy. — It is a hereby declared as 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 the proper exercise of its power of taxation.

SEC. 3. A new section designated as Section 150-C of the National Internal Revenue
Code of 1997. as amended. is hereby added to read as follows:

“SEC. 150-C. PLASTIC BAGS.

“(A) RATE AND BASE OF TAX. - EFFECTIVE JANUARY 1, 2023,
THERE SHALL BE LEVIED, ASSESSED, AND COLLECTED AN EXCISE
TAX IN THE AMOUNT OF TWENTY PESOS (PHP20.00) FOR EVERY
KILOGRAM OF PLASTIC BAGS REMOVED FROM THE PLACE OF
PRODUCTION OR RELEASED FROM THE CUSTODY OF THE BUREAU
OF CUSTOMS.

“PROVIDED, THAT THE EXCISE TAX RATE PER KILOGRAM
IMPOSED UNDER THIS SUBSECTION SHALL BE INCREASED BY
FOUR PERCENT (4%) ON JANUARY 1. 2026 AND EVERY YEAR
THEREAFTER

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“PLASTIC BAGS SHALL REFER TO SECONDARY LEVEL
PLASTICS MADE OF SYNTHETIC OR SEMISYNTHETIC ORGAN
POLYMER. COMMONLY KNOWN AS “L4BO" OR “SANDO™ BAGS.
WITH OR WITHOUT HANDLE, USED AS PACKAGING FOR GOODS OR
PRODUCTS.

~(B) FILING OF RETURN AND PAYMENT OF EXCISE TAX AND
PENALTY. —

(1) FILING OF RETURN AND PAYMENT OF EXCISE TAX ON
DOMESTIC AND IMPORTED PLASTIC BAGS. — THE PROVISIONS OF
SECTIONS 130 AND 131, AS APPROPRIATE, OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED, SHALL APPLY
TO PLASTIC BAGS.

(2) PENALTY. - UPON FINAL FINDINGS BY THE
COMMISSIONER OF INTERNAL REVENUE AND/OR CUSTOMS THAT
ANY MANUFACTURER OR IMPORTER, IN VIOLATION OF THIS
SECTION, MISDECLARES OR MISREPRESENTS IN THE SWORN
STATEMENT PROVIDED IN SECTION 130(C) OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED, ANY
PERTINENT DATA OR INFORMATION, THE PENALTY OF SUMMARY
CANCELLATION OR WITHDRAWAL OF THE PERMIT TO ENGAGE IN
BUSINESS AS MANUFACTURER OR IMPORTER OF PLASTIC BAGS
AS PROVIDED UNDER SECTION 268 OF THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED, SHALL BE IMPOSED.

ANY CORPORATION, ASSOCIATION. OR PARTNERSHIP
LIABLE FOR ANY OF THE ACTS OR OMISSIONS IN VIOLATION OF
THIS SECTION SHALL BE FINED TREBLE THE AMOUNT OF
DEFICIENCY TAXES. SURCHARGES, AND INTEREST WHICH MAY BE
ASSESSED PURSUANT TO THIS SECTION.

ANY PERSONS LIABLE FOR ANY OF THE ACTS OR OMISSIONS,
PROHIBITED UNDER THIS SECTION SHALL BE CRIMINALLY LIABLE
AND PENALIZED UNDER SECTION 254 OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED. ANY PERSON
WHO WILLFULLY AIDS OR ABETS IN THE COMMISSION OF ANY
SUCH ACT OR OMISSION SHALL BE CRIMINALLY LIABLE IN THE
SAME MANNER AS THE PRINCIPAL.

IF NOT A CITIZEN OF THE PHILIPPINES, THE OFFENDER
SHALL BE DEPORTED IMMEDIATELY AFTER SERVING THE
SENTENCE WITHOUT FURTHER PROCEEDINGS FOR DEPORTATION.

SEC. 4. Section 288 of the National Internal Revenue Code of 1997. as amended. is
hereby further amended to read as follows:

“SEC. 288. Disposition of Incremental AND OTHER Revenues. —

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‘
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(A) xxx
“(B) xxx
“(C) xxx
“(D) xxx
S(E) xxx
“(P) xxx
“(G) xxx

“(H) DISPOSITION OF REVENUES FROM THE EXCISE TAX ON
PLASTIC BAGS. -THE REVENUES COLLECTED FROM THE EXCISE
TAX ON PLASTIC BAGS SHALL BE ALLOCATED AND USED
EXCLUSIVELY FOR THE IMPLEMENTATION OF THE SOLID WASTE
MANAGEMENT PLANS OF THE NATIONAL GOVERNMENT TO BE
INCLUDED IN THE ANNUAL GENERAL APPROPRIATIONS ACT.

SEC. 5. Implementing Rules and Regulations. ~ Within ninety (90) days from the
effectivity of this Act, the Department of Finance shall, upon the recommendation of the
Bureau of Internal Revenue and the Bureau of Customs and, in consultation with the
Department of Environment and Natural Resources and the Department of Budget and
Management, issue the rules and regulations for the effective implementation of this Act

SEC. 6. Repealing Clause. — All laws. decrees. executive orders. rules, and regulations.
and other issuances, or parts thereof. which are contrary to or inconsistent with this Act. are
hereby repealed, amended. or otherwise modified accordingly.

SEC. 7. Separability Clause. ~ If any provision of this Act is declared invalid or
unconstitutional, the remaining provisions hereof which are not affected shall remain in full
force and effect.

SEC.8. Effectivity. - This Act shall take effect fifteen (15) days following its publication
in the Official Gazette or in at least one (1) newspaper of general circulation.

Approved.

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