of tllf r fi^I'P
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
‘22 JUL-7 P4 -42
RECEIVED BY;
SENATE
S.B. NO.
Introduced by SENATOR IMEE R. MARCOS
AN ACT GRANTING THE PRESIDENT OF THE PHILIPPINES THE POWER TO 
LOWER THE RATE OR SUSPEND THE IMPOSITION OF VALUE-ADDED TAX 
ON PETROLEUM PRODUCTS FOR A LIMITED PERIOD OF ONE (1) YEAR IN 
TIMES OF NATIONAL EMERGENCY OR STATE OF CALAMITY, AMENDING 
FOR THE PURPOSE SECTIONS 106 AND 107 OF THE NATIONAL INTERNAL
REVENUE CODE, AS AMENDED
EXPLANATORY NOTE
Article II, Section 9 of the Constitution provides that the "State shall promote a 
just and dynamic social order that will ensure the prosperity and independence of the 
nation and free the people from poverty through policies that provide adequate social 
services, promote full employment, a rising standard of living, and an improved quality 
of life of all."
The Filipino people and workers have felt the severe impact of the COVID-19 
pandemic. While the Philippines has been gradually recovering from the effects of the 
pandemic, as of April 2022, the Philippine Statistics Authority reported an 
unemployment rate of 5.7% (2.76 million unemployed). While we see slight 
improvement as compared to the unemployment rate of 8.7% in the first half of 2021, 
it is undeniable that a vast number of Filipinos are still unemployed and without a stable 
source of income.
Since the implementation of Republic Act No. 10963, or the Reform for 
Acceleration and Inclusion (TRAIN) Law", fuel prices have steadily risen. These oil price 
hikes have had a noticeable domino effect on the prices of basic goods and services, 
such as agricultural products, transportation, food, electricity and other essentials. The 
recent situation, including the recovery of global energy demand and the Russia- 
Ukraine crisis has resulted to the year-to-date increases of Php 30.00 per liter for 
gasoline, Php 45.90 per liter for diesel, and Php 39.75 for kerosene as of June 28, 2022.


The higher cost of petroleum products has resulted in inflation being above the 
government target of 2-4% for 2022, with inflation at 4.0% in March, 4.9% in April, 
and 5.4% in May. The Bangko Sentral ng Pilipinas (BSP) identified continued increases 
in domestic oil prices as one of the primary sources of inflationary pressure.
In view of the current economic and employment situation of the country 
resulting from the COVID-19 pandemic, there is a need to give some relief to the 
Filipinos and ensure that they are able to survive and recover during this pandemic. As 
a means of easing the financial burden of the public, this bill proposes to grant the 
President of the Philippines the power to temporarily lower the rate or suspend the 
imposition of Value-Added Tax on petroleum products in times of national emergency 
or a state of calamity, such as this pandemic. To ensure fiscal sustainability on the part 
of the Government, excise taxes imposed on the petroleum products will be retained.
In view of the foregoing, the approval of this bill is earnestly sought.
' /l.
IMEfR. MAR^ZoF


Sennit
'(©fi'icr of ti'ir :.' C l .:' i-j>
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
‘22 JUL-7 P4:42 
\
RECEIVtD GV. X
S.B. No.
SENATE
187
Introduced by SENATOR IMEE R. MARCOS
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AN ACT GRANTING THE PRESIDENT OF THE PHILIPPINES THE POWER TO 
LOWER THE RATE OR SUSPEND THE IMPOSITION OF VALUE-ADDED TAX 
ON PETROLEUM PRODUCTS FOR A LIMITED PERIOD OF ONE (1) YEAR IN 
TIMES OF NATIONAL EMERGENCY OR STATE OF CALAMITY, AMENDING 
FOR THE PURPOSE SECTIONS 106 AND 107 OF THE NATIONAL INTERNAL
REVENUE CODE, AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Section 106 of the National Internal Revenue Code of 1997, as 
amended, is further amended to read:
"Section 106. Value-added Tax on Sale of Goods or Properties. -
(A) Rate and Base of Tax - There shall be levied, assessed and 
collected on every sale, barter or exchange of goods or properties, a value- 
added tax equivalent to twelve percent (12%) of the gross selling price or 
gross value in money of the goods or properties sold, bartered or exchanged, 
suck tax to be paid by the seller or transferor. PROVIDED, THAT THE 
PRESIDENT OF THE PHILIPPINES, BY VIRTUE OF AN EXECUTIVE 
ORDER, AFTER CONSULTATION WITH THE SECRETARY OF 
FINANCE, MAY LOWER THE RATE OR SUSPEND THE IMPOSITION 
OF THE VALUE-ADDED TAX ON THE SALES OF PETROLEUM 
PRODUCTS IN TIMES OF A DULY DECLARED STATE OF NATIONAL 
EMERGENCY OR STATE OF CALAMITY FOR A PERIOD NOT 
EXCEEDING ONE (1) YEAR UPON DETERMINATION BY THE 
PRESIDENT THAT SUCH LOWERING OF RATE OR SUSPENSION IS 
NECESSARY TO PROTECT PUBLIC INTEREST AND WELFARE.
XXX.


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SEC. 2. Section 107 of the National Internal Revenue Code of 1997, as 
amended, is further amended to read:
"Section 107. Value-added Taxon the Importation of goods. -
(A) In General. - There shall be levied, assessed and collected on 
every importation of goods a value-added tax equivalent to twelve percent 
(12%) based on the total value used by the Bureau of Customs in determining 
tariff and customs duties, plus excise taxes, if any, and other charges, such 
tax to be paid by the importer prior to the release of such goods from customs 
custody: Provided, That where the customs duties are determined on the 
basis of the quantity or volume of the goods, the value-added tax shall be 
based on the landed cost plus excise taxes, if any. PROVIDED FURTHER, 
THAT THE PRESIDENT OF THE PHILIPPINES, BY VIRTUE OF AN 
EXECUTIVE ORDER, AFTER CONSULTATION WITH THE SECRETARY 
OF FINANCE, MAY LOWER THE RATE OR SUSPEND THE IMPOSITION 
OF THE VALUE-ADDED TAX ON THE IMPORTATION OF PETROLEUM 
PRODUCTS IN TIMES OF A DULY DECLARED STATE OF NATIONAL 
EMERGENCY OR STATE OF CALAMITY FOR A PERIOD NOT 
EXCEEDING ONE (1) YEAR UPON DETERMINATION BY THE 
PRESIDENT THAT SUCH LOWERING OF RATE OR SUSPENSION IS 
NECESSARY TO PROTECT PUBLIC INTEREST AND WELFARE.
X X X."
SEC. 3. Implementing Rules and Regulations. - Within thirty (30) days from the 
effectivity of this Act, the Secretary of Finance shall, upon recommendation of the 
Commissioner of the Bureau of Internal Revenue, promulgate the rules and regulations 
necessary for its effective implementation.
SEC. 4. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, 
and rules and regulations or parts thereof which are contrary to and inconsistent with 
any provisions of this Act are hereby repealed, amended or modified accordingly.
SEC. 5, Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
SEC. 6. Effectivity Clause. -This Act shall take effect fifteen (15) days after its 
complete publication either in the Official Gazette or in a newspaper of general 
circulation in the Philippines.
Approved/