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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
Introduced by SENATOR LUISA "Loi" P. EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Constitution is clear: education is imperative for national development. 
Article 2, Section 17, provides that "The State shall give priority to education ... to foster 
patriotism and nationalism, accelerate social progress and promote total human liberation 
and development." Article 14, Section 1, states that "The State shall protect and promote 
the riglit of all citizens to quality education at all levels and shall take appropriate steps to 
inalte such education accessible to all." 
That education is a right is recognized by the State. Such recognition imposes 
iipon the State the responsibility of sharing with the parents the burden of educating the 
youth. That notwithstanding, the yearly budgetary process subordinates education to debt 
service. This has succeeded in denying to the majority of our people fdl access to quality 
education. While fdly aware of the gravity of this problem, we have so far been unable to 
address it. 
The State also provides for free elementary and secondary education. There is 
token government provision for tertiary education through a limited number of state 
universities and colleges, where there is a limited public access. The private sector is 
wholly left to bear the cost of private elementary and secondary and public and ,private 
tertiary schooling. Manifestly, the State has failed to adequately meet the requirements of 
the nation. It is in the context of such inability, and the prohibitive cost of education, 
especially for the poor, that more creative remedial measures must be found. 
This bill aims to help the State live up to its constitutional commitment while 
helping parents and families who have to spend a big part of their small incomes for 
education by allowing tax exemptions for educational expenses at all levels, public and 
private. The bill especially addresses the plight of the approximately 80% of college 
students enrolled in private schools. The bill eases the burden of poor families who toil 
and sell everything they have to send their children to private schools because of limited 
opportunities and lack of space in state-run institutions. 
In particular, the parents and families who send their children or dependents to 
private schools are burdened twice: 
(1) 
first, with the taxes they pay, they help subsidize or support the education 
of the children of other parents and families who go to public schools, and 
(2) 
second, with their personal or private funds, they assume the obligation of 
the State to provide for education of the young 
T ~ u s ,  income of the taxpayer which is spent for the education of dependents 
Anyway, such expense is really an investment not oiily in the 
should not be taxed. 
personal future of the student but that also of the nation. 


Education, whether undei-talten by the State or upon private initiative, is public iii 
character. We have mandated it to be so in our fundamental charter. This is our sacred 
responsibility in government, so we are committed to uphold it. 
Approval of this bill is therefore earnestly sought. 
LUISA "LOI" 
EJECITO ESTRADA 
nator 


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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
Introduced by SENATOR LUISA "LQI" P. EJERCITQ ESTRADA .,* 
AN ACT 
PROVIDING TAX EXEMPTION ON THE EDUCATIONAL EXPENSES INCURRED 
BY A TAXPAYER, AMENDING SECTION 35 OF THE NATIONAL INTERNAL 
REVENIJE CODE, AS AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Seriate and the House of Representatives of the Philippines in 
Congress cisseni bled: 
Section 1. Section 35, subsection (B) of the National Internal Revenue Code, as 
amended, shall be flirther amended to include an additional item of personal exemption 
which shall read as follows: 
"ACTUAL TUITION AND OTHER ORDINARY EDUCATION FEES 
OR EXPENSES JNCURRED BY THE TAXPAYER IN THE AMOUNT OF 
NOT MORE THAN TWENTY THOUSAND PESOS (P20,OOO.OO) A YEAR 
PER DEPENDENT, BUT NOT MORE THAN FOUR DEPENDENTS: 
PROVIDED, THAT SUCH CEILING SHALL BE INCREASED THROUGH 
RULES AND REGULATIONS BY THE SECRETARY OF FINANCE TO 
CONSIDER, AMONG OTHERS, THE ANNUAL INFLATION RATE. 
Sec. 2. 
All provisions of the National Internal Revenue Code, as amended, 
inconsistent with the above provision, are hereby amended accordingly. 
Sec. 3. This Act shall lake effect fifteen (15) days after its publication'iii'the 
Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
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