EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
s. No. lOOV
of it)C
•19 SEP-4 P12:35
Introduced by Senator Ralph G. Recto re.„:, 11;
AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER 
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION 
TO LEGAZPI CITY, ALBAY, PROVIDING FUNDS FROM THE ANNUAL VALUE- 
ADDED TAX COLLECTIONS, AMENDING FOR THE PURPOSE THE NATIONAL 
INTERNAL REVENUE CODE OF 1997, AS AMENDED
EXPLANATORY NOTE
The Philippine government recognizes the need to interconnect our regions 
through good transport and communication networks. It gives higher priority to asset 
preservation or maintenance and rehabilitation of the existing transport infrastructure 
network rather than new construction or development particularly on the quality of the 
existing railroad tracks and services. This will open up new economic opportunities, 
reduce transportation and transaction costs of business and increase access to social 
services particularly the marginalized sectors.1
This bill allocates five percent (5%) of annual value-added tax (VAT) collections 
to reconstruct and rehabilitate the existing 479-kilometer stretch of Philippine National 
Railways (PNR) lines from San Fernando, La Union to Legazpi City, Albay.
The interconnection of regions in Luzon through a railway network from San 
Fernando, La Union to Legazpi City, Albay will decentralize progress and bring 
development to the countryside. At the same time, this bill will provide productive 
employment 
opportunities 
through 
sustainable 
infrastructure 
projects. 
The 
reconstruction and rehabilitation of this railway network will provide thousands of jobs
1 NEDA, "Philippine Development Plan 2011-2016, Chapter 5; Accelerating Infrastructure Development" 
httD ://www.neda.qov.Dh/PDP/2011-2016/CHAPTER%205.Ddf
1


to Filipinos who can provide hard labor to build, restore and rehabilitate roads, bridges 
and other structures.
Also, this project is a climate-change adaptation measure. It addresses certain 
environmental concerns, particularly, the mitigation of greenhouse effect which 
contributes significantly to global warming. 
Train, in all studies, has a lower 
greenhouse gas emission rate than any motorized modes of transportation which rely 
heavily on fossil fuel for their operation.
This bill further responds to a need for sustainable planning of infrastructure 
investments. Moving passengers and goods from La Union to Bicol will accelerate trade 
and encourage migration in those areas. It will also meet one of our toughest 
development challenges and that is the decentralization of progress by decongesting 
our crowded cities and urban areas to provide our people in the frontiers better access 
to social services.
In this light, the immediate passage of this bill is earnestly sought.
/mjma


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
S. No. 1007
I
(PHlti- r>f ;l)t fenrrtflrD
•19 SEP-4 R2:35
Introduced by Senator Ralph G. Recto Rt.
AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER 
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION 
TO LEGAZPI CITY, ALBAY, PROVIDING FUNDS FROM THE ANNUAL VALUE- 
ADDED TAX COLLECTIONS, AMENDING FOR THE PURPOSE THE NATIONAL 
INTERNAL REVENUE CODE OF 1997, AS AMENDED
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. A new section, to be numbered two hundred eighty-seven (287), shall
2 
be added to Chapter II, Title XI of the National Internal Revenue Code, as amended to
3 
read as follows:
4 
"SEC. 287. DISPOSITION OF PROCEEDS OF VALUE-ADDED
5 
T A X .-k .) TWO AND A HALF PERCENT (2.5% ) OF THE VALUE-
6 
ADDED TAX COLLECTED 
UNDER TITLE IV OF THIS ACT, AS
7 
AMENDED, SHALL BE ALLOCATED TO 
RECONSTRUCT 
AND
8 
REHABILITATE THE 
EXISTING 479-KILOMETER 
PHILIPPINE
9 
NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION TO
10 
LEGAZPI CITY, ALBAY;
11 
B.) TWO AND A HALF PERCENT (2.5% ) OF THE VALUE-ADDED
12 
TAX COLLECTED UNDER TITLE IV OF THIS ACT, AS AMENDED,
13 
SHALL BE ALLOCATED FOR THE ACQUISITION OF ROAD RIGHT
14 
OF WAY NEEDED TO 
IMPLEMENT THE PROJECT MENTIONED
15 
IN THE PRECEDING PARAGRAPH.
16 
THE ALLOCATION SHALL BE ADMINISTERED BY THE
17 
DEPARTMENT OF TRANSPORTATION (DOTr), THROUGH ITS
18 
ATTACHED AGENCY PHILIPPINE NATIONAL RAILWAYS (PNR)."


1 
Sec. 2. The succeeding Sections of the National Internal Revenue Code, as
2 
amended are hereby renumbered accordingly.
3 
Sec. 3. Implementing Rules and Regulations. -  The Department of Budget and
4 
Management, in coordination with the Department of Finance, Bureau of Internal
5 
Revenue, DOTr and PNR shall, within thirty (30) days from the effectivity of this Act,
6 
promulgate the rules and regulations to effectively implement the provisions of this Act.
7 
Sec. 4. Repealing Clause. -  Any law, presidential decree or issuance, executive
8 
order, letter of instruction, rule or regulation inconsistent with the provisions of this Act
9 
is hereby repealed or modified accordingly.
10 
Sec. 5. Effectivity. -  This Act shall take effect after fifteen (15) days following its
11 
complete publication in the Official Gazette or in at least two (2) newspapers of general
12 
circulation.
Approved,