FIFTEENTH CONGRESS i}
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

House Bill No,_2806

EXPLANATORY NOTE

There has been tremendous increases in the price of oil. This increase
in the price of oil is attributed mainly to increase in price of crude oil in the world
market. On the other hand, the price of oil in world market is attributed to
several factors like decline in petroleum reserves, Middle East tension, and oil
price speculation. Just like other countries, the Philippines, being an importer of
oil, has been adversely affected by this unfortunate scenario.

The increase in the prices ‘of gasoline, diesel, and kerosene, among
others, has directly caused the price of other commodities to soar. The public
in general are very much affected by the inflation caused by oil price increase.
Although the price of oil in the world market is beyond our control, we should
not sit idly and just wait for the time that the price of oil to drop to a manageable
level. The government must take measures to limit the adverse effects of
increasing price of oil.

This bill seeks to alleviate the sad plight of our country due to
extraordinary increases of the price of oil by taking measures to limit its
adverse effects in our economy as a whole.

In view thereof, immediate approval of this Bill is sought

Vp.

MAXIMO B. RODRIGUEZ, JR.

RUFUS B. RODRIGUEZ


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

House Bill No. 2806

AN ACT
SUSPENDING THE EXPANDED VALUE ADDED TAX (EVAT) ON OIL
PRODUCTS, BY SUSPENDING THE THREE PERCENT TARIFF ON ALL
OIL IMPORTATIONS AND BY GRANTING SUBSIDY TO CONSUMERS
FROM THE WINDFALL EVAT TAXES COLLECTED FROM OIL PRODUCTS

Section 1. Declaration of Policy. — \t is the declared policy of the State
to limit, if not totally eliminate the adverse effects of extraordinary increases in
the price of oil products on the Filipino people.

Section 2. Suspension of Expanded Value Added Tax (EVAT).
The imposition of Expanded Value Added Tax (EVAT) on oil products shall be
suspended until the prices of crude oll and other related products have lowered
to a manageable level as determined by the National Economic and
Development Authority (NEDA).

Section 3. Suspension of three percent (3%) tariff on oil products.
The three percent (3%) tariff on oil importations shall also be suspended until
the prices of crude oil and other related products have lowered to a
manageable level as determined by the National Economic and Development
Authority (NEDA).

Section 4. Subsidy to consumers from the windfall EVAT taxes
collected from oil products. The windfall EVAT taxes collected since 2005
when the price of oil products was only P30fliter shall be computed and the
equivalent amount is hereby appropriated to subsidize the Filipino consumers
from the effects of galloping prices of oil products.

Section 5. Implementing Rules and Regulations. The Department
of Finance shall promulgate the rules and regulations for the effective
enforcement of the provisions of this law.

Section 6. Repealing Clause. - All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

Section 7. Effectivity. - This Act shall take effect fifteen (15) days

after its complete publication in at least two (2) newspapers of general
circulation.

Approved,