Republic of the Philippines
House of Representatives
Quezon City

Seventeenth Congress
First Regular Session

House Bill No. 0386

Introduced by Representative Estrellita B. Suansing

EXPLANATORY NOTE
Section 15, Article I! of the 1987 Constitution provides:

“The State shall protect and promote the right to health of the
people and instill health consciousness among them.”

Section 11, Article XIII of the 1987 Constitution likewise provides in part:

“The State shall adopt an integrated and comprehensive
approach to health development which shall endeavor to make essential
goods, health and other social services available to all the people at
affordable cost. xxx.”

In many stores, the price of a regular bottled water (350 mi) is more expensive
than some juices and sodas with the same volume. For this reason, consumers prefer
to buy and drink juices and sodas than bottled water. The public’s consumption of
sugar sweetened beverages more frequently than water will lead to several illnesses
attributable to high sugar level in the blood.

Any sugar level higher than normal are unhealthy. Glucose is precious fuel for all
the cells in the body at normal level. But it can behave like a slow-acting poison at high
level. High sugar levels slowly erode the ability of cells in the pancreas to make insulin
The organ overcompensates and insulin levels stay too high. Over time, the pancreas is
permanently damaged. High levels of blood sugar can cause changes that lead to a
hardening of the blood vessels, what doctors call atherosclerosis. Almost any part of the
body can be harmed by too much sugar.

Damaged blood vessels cause problems such as: kidney disease or kidney
failure requiring dialysis; strokes; heart attacks; vision loss or blindness; weakened
immune system with a greater risk of infections; erectile dysfunction; nerve damage
also called neuropathy that causes tingling, pain, or less sensation in your feet, legs,
and hands; poor blood circulation to the legs and feet; and slow wound-healing and the
potential for amputation in rare cases.

In an article by WebMD Medical Reference Reviewed by Michael Dansinger,
MD on December 14, 2016, it stated that among the worst choices of drinks for
persons with high sugar blood level are regular sodas, regular beer, fruity mixed
drinks, dessert wines, sweetened tea, coffee with sugar and cream, chocolate drinks
and energy drinks, all of which are sugar sweetened beverages.


If the prices of the aforementioned sugary drinks are cheaper than bottled
water, the public will prefer to buy sugar sweetened beverages than water. Basic as
itis, this seldom noticed consumer preference of sugar sweetened beverages instead
of water is destructive to health can be avoided by lowering the price of bottled water
compared to sugar sweetened beverages. Hence, this bill seeks to lower the price of
bottled water by exempting the sale thereof from the imposition of value-added tax
(VAT). Exempting the sale of bottled water from VAT makes it a cheaper and healthier
alternative than sugar sweetened beverages.

In view of the foregoing, approval of this bill is earnestly sought.

ESTRELLITA B. SUANSING


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Republic of the Philippines
House of Representatives
Quezon City

Seventeenth Congress
First Regular Session

House Bill No. 5386
Introduced by Representative Estrellita B. Suansing

AN ACT
EXEMPTING BOTTLED WATER FROM VALUE ADDED TAX, AMENDING
PRESIDENTIAL DECREE NO. 1158, AS AMENDED, ALSO KNOWN AS THE
“NATIONAL INTERNAL REVENUE CODE OF 1997”

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

SECTION 1. Section 109 of Presidential Decree No. 1158, as amended, is
hereby further amended to read as follows:

"SEC. 109. Exempt Transactions. - (1) Subject to the provisions
of subsection (2) hereof, the following shall be exempt from the value-
added tax:

(A) xx 70K 200;

(U) Services of banks, non-bank financial intermediaries
performing quasi-banking functions, and other non-bank financial
intermediaries; [and]

(V)__ Sale or lease of goods or properties or the performance of
services other than the transactions mentioned in the preceding
Paragraphs, the gross annual sales and/or receipts do not exceed the
amount of One million five hundred thousand pesos (P1,500,000.00):
Provided, That not later than January 31, 2009 and every three (3) years
thereafter, the amount herein stated shall be adjusted to its present
value using the Consumer Price Index as published by the National
Statistics Office (NSO); AND

(W) SALE OF BOTTLED WATER, EVEN IF THE BOTTLED
WATER HAVE UNDERGONE ANY PROCESS OF PREPARATION OR
PRESERVATION FOR THE MARKET SUCH AS DISTILLATION,
DEIONIZATION, REVERSE OSMOSIS OR OTHER SUITABLE TYPE


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OF PURIFICATION, THE PRIMARY PURPOSE OF WHICH IS FOR

HUMAN CONSUMPTION".

SEC. 2. Implementing Rules and Regulations. — Within sixty (60) days from
the effectivity of this Act, the Commissioner of Internal Revenue, in consultation with
the Secretary of Finance, shall issue the necessary revenue regulation to carry out the
provisions of this Act.

SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in a newspaper of general circulation.

Approved,