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SlrP I i: 
FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
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Introduced by Senator Villar 
EXPLANATORY NOTE 
Those who have less in life should have more in law. It is a fact that one of 
the main problems of the Philippines has to do with the hand-in-hand problem of 
poverty and hunger. 
The primary cause of malnutrition is the inequitable distribution of food, 
which is related of course to poverty. The typical Filipino diet is grossly 
inadequate for energy and other nutrients. This situation is unlikely to improve as 
long as an estimated 28 million Filipinos are unable to buy food to meet basic 
nutritional requirements. 
Poverty in the Philippines is most acute and widespread in rural areas. 
Although Manila certainly has its share of urban poor, the National Capital 
Region has the lowest poverty incidence in the country. Nationwide, one can the 
poverty incidence rates is 21 5% in urban areas to the 50.7% rate in rural areas. 
Poverty and malnutrition are already at alarming levels in this country, and 
the country's too-rapid population growth is magnifying the strain on limited 
budgetary resources. The rapidly growing population is jeopardizing the quality of 
basic social services, contributing to the ongoing decline in quality of basic 
education, and limiting access to health care (especially primary health care, 
reproductive health/family planning, immunization, and feeding programs). 
For this reason, there needs to be legislation that is geared toward 
returning to the Filipino people, especially those who have lesser in life, the 
enforced proportional contributions levied upon people in the form of taxes. 
Specifically, through the collections emanating from the Value-Added Tax 
System., because only then can the marginalized sectors of society feel that they 
are being granted more in law despite the fact that they have lesser in their lives. 
MANNYVI LAR 
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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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S E N A T E  
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S. B. 
Introduced by Senator Villar 
AN ACT 
TO ALLEVIATE THE CONDITIONS OF THE MARGINALIZED SECTORS OF 
SOCIETY BY PROVIDING A FOOD SUBSIDY PROGRAM 
Be it enacted by the Senate and the House of Representatives in the Philippines 
in Congress assembled 
Section 1. Declaration of policies. - it is hereby declared the policy of the 
State: 
(a) To promote a just and dynamic social order that will ensure the 
prosperity and independence of the nation and free :he people from poverty 
through policies that provide adequate social services, promote full employment, 
a rising standard of living, and an improved quality of life for all. 
(b) The Congress shall give highest priority to the enactment of measures 
that protect and enhance the right of all the people to human dignity, reduce 
social, economic, and political inequities, and remove cultural inequalities by 
equitably diffusing wealth and political power for the common good. 
(c) In pursuance of these Constitutionally-proscribed policies, the welfare 
of the sectors of society that need the most assistance from the government in 
the form of subsidies shall be given consideration. 
Section 2. Food Subsidy Program. - There is hereby established a FOOD 
SUBSIDY PROGRAM in favor of individuals qualified as such under the 
parameters set forth by law. 
The food subsidy program shall grant to individuals a monthly allowance to be 
sourced directly from the collections made through the Value-Added Tax System. 
The following individuals are qualified to receive subsidies as hereunto set forth 
by law: 
1. A head of the family earning less than One-hundred twenty thousand 
pesos (P120,OOO.OO) annually, exclusive of bonuses, overtime pay, 
holiday pay, night-shift differential; 
A head of the family shall mean an individual who is married or is legally 
separated, or whose marriage has been annulled and who has a child or 
children in his or her custody; or whose parents are living with him and are 
dependent on him chiefly for support, regardless I f  the age of the parents. 
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2. An individual who is gainfully employed but who is earning less than one- 
hundred thousand pesos (PI 00,000) annually, exclusive of bonuses, 
overtime pay, holiday pay, and night-shift differer :iaL 
3. A married couple who earns not more than two-hundred thousand pesos 
(P200,OOO.OO) annually who has custody of not more than three (3) 
children, and not more than four (4) children and parents combined. 
Provided, that in all the above enumerated instances, the total income of the 
household, both active and passive, shall not exceed the amounts as stated. 
Provided, further, that a family shall get an additional three hundred pesos 
(P300.00) for every child who logs at least eighty five percent (85%) class 
attendance in a month. Three children per family can avail of this additional 
amount. 
The food subsidy program shall be available to all individuals or heads of the 
family all over the Philippines. 
The food subsidy program shall consist of monthly allowances amounting to 
seven hundred pesos (P700.00) per month for an individual or a head of the 
family; Provided that, within three (3) years from the enactment of this legislation, 
the administrator of this.program shall determine, through public hearing, and in 
consultation with representatives from the private sector, if the amount should be 
adjusted to meet the present needs of the families; Provided further, that such 
amount shall be exempt from taxes. 
Section 3. Entitlement to monthly allowances. - The amount so determined 
earlier to be given to the individual or head of the family shall be given on a 
monthly basis at the first week of each month. 
Individuals qualified to receive the benefits of this law shall apply for inclusion to 
the same before the administrator of this law. The Adrr inistrator, convened as a 
Board, shall determine whether the individual is entitled to the benefits of this law 
through presentation by the applicant of the necessary income documents to 
prove that he comes within the qualifications of the law; Provided, that an 
individual who cannot produce income documents issued by the employer shall 
execute an affidavit attesting to the income being received by the individual both 
monthly and yearly. 
The individuals qualified as such shall be entitled to the benefits hereafter from 
the time of approval of the said application. 
If the individual granted the benefits of this program is later on discovered to be 
receiving income more than the amount so provided for by law, he shall be 
disqualified from availing of the benefits of this program, and other similar 
programs, in perpetuity; Provided, that the mere discovery of receiving income 
more than the provisions of the law shall be conclusive presumption of fraud and 
deceit employed by the individual. 
Section 4. How the benefits of this program are to be received. - The 
benefits received herein shall be given to the individual by means of a Food 
Subsidy Program Card (FSPC) to be given upon determination that he is 


qualified to avail of these benefits. The FSPC shall be provided by the Land Bank 
of the Philippines. 
The amount so credited to the FSPC may not be withdrawn from its account. The 
said amount may be used for purposes of electronic payments to the duly- 
accredited retail establishments herein. 
Section 5. Duly-accredited Retail Establishments. - Throughout the 
Philippines, there shall be registered retail establishments that will provide the 
needs of the entitled individuals under the food subsidy program. 
Within three (3) years from the effectivity of this Act, the e shall be established, at 
least one (1) duly-accredited retail establishment in every barangay in the 
Philippines; Provided, that after the effectivity of this law, the failure to establish 
duly-accredited establishments shall not be a hindrance to the enforcement of 
this Act. 
The duly-accredited retail establishments shall provide the basic needs of the 
individuals entitled hereto, including but not limited to the following purchases: 
" 
1. Agricultural produce: 
2. Dairy products; 
3. Processed food: 
4. Noodles (whether processed or not): 
5. Others 
Provided, that the products aforementioned shall only be sourced throughout the 
Philippines by the seller of the same, and if possible, hithin the same barangay, 
province, city or municipality to provide economic and livelihood opportunities 
within the community. 
The duly-accredited retail establishments may be put up only by Resident 
Citizens of the Philippines living within the said barangay, province, city or 
municipality where the same shall be established. 
The duly-accredited retail establishments shall not be considered a Corporation 
for purposes of taxation under the National Internal Revenue Code for the first 
three (3) years of its operation. 
Section 6. Administrator of the Food Subsidy Program. - The National Food 
Authority shall be the administrator of the food subsidy program. 
In convening a Board for the purposes of determining the entitlement of 
individuals herein, the following shall compose the Board: 
1) A representative from the National Food Authority in the region where 
2) A representative from the marginalized sector of society; 
3) A representative from the Bureau of Internal Revenue; 
the Board is established; 
The Board shall be convened for every region in the Philippines, and shall 
convene at least once a month, for the purpose of determining the individuals 
entitled to the benefits of this Act. 


The Board shall determine, within three (3) years from the approval of this Act, 
and every three (3) years thereafter, in consultation with the National Economic 
Development Authority, if the subsidies to be given should be increased, but at 
no time shall it be decreased. 
Section 7. Repealing Clause. - All laws, orcrers, decrees, rules and 
regulations, and other parts thereof inconsistent with the provisions of this Act 
are hereby repealed, amended or modified accordingly. 
Section 8. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
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