gsfiiafe
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
811
7rM
of llK
25 AUG-4 PI 31
RECEIVED
S. No.
Introduced by Senator Loren Legarda
AN ACT
IMPOSING AN EXCISE TAX ON SPECIFIED TYPES OF SINGLE-USE PLASTIC 
PACKAGING MATERIALS, PROVIDING FOR ITS ADMINISTRATION, 
COLLECTION, AND ALLOCATION, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Plastic pollution is one of the most pressing environmental challenges of our 
time. The Philippines is estimated to generate over 2.7 million metric tons of plastic 
waste annually, around 20% of which ends up in the ocean.1 A significant portion of 
this waste comes from single-use plastic packaging such as sachets, wrappers, and 
carry-out plastic bags. These materials, often used for just a few minutes, persist in 
the environment for hundreds of years — clogging waterways, harming marine 
ecosystems, and contributing to flooding, especially in urban areas.
These scenes are tragically familiar: every year, typhoon-season floods are 
compounded by plastic waste—pools of contaminated standing water, blocked 
drainage, property damage, and spikes in dengue and leptospirosis. In Metro Manila 
alone, the Department of Public Works and Highways (DPWH) estimates that 70% of 
drainage infrastructure is obstructed by accumulated garbage, including plastics.2
The country's widespread dependence on disposable plastic packaging is driven 
by both market and economic forces. In particular, the prevalence of sachet-based
1 World Bank. (2021). Market study for the Philippines: Plastics circularity opportunities and barriers. 
World Bank Group. Retrieved from
https://www.worldbank.org/en/country/philippines/publication/market-study-for-philippines-plastics- 
circularity-opportunities-and-barriers-report-landing-page on July 17, 2025.
2 Oceana Philippines. (2022, July 20). Choking our cities, drowning our future. Retrieved from 
https://ph.oceana.org^log/choking-our-cities-drowning-our-future/ on July 17, 2025.


consumer goods and low-cost packaging formats reflects the reality of retail and 
consumption in low-income communities. While accessible, these packaging types 
carry a hidden cost: the long-term burden of unmanaged waste.
This bill, to be known as the PlasTax Act, seeks to address this issue by 
introducing an excise tax of P150.00 per kilogram on specified types of single-use 
plastic packaging materials. The measure aligns with the revenue-raising initiatives of 
the Department of Finance (DOF) and builds on international best practices that use 
fiscal instruments to curb unsustainable production and consumption. The tax applies 
to both manufacturers and importers, and covers common formats such as sachets, 
wrappers, film packs, and plastic bags.
To ensure fairness and practicality, the bill exempts plastic packaging used for 
medical products, disaster relief, and other essential functions certified by relevant 
agencies. It also exempts certified biodegradable and compostable alternatives to 
encourage innovation and uptake of sustainable materials.
Importantly, the bill includes a mandatory indexation mechanism, adjusting the 
tax every three years based on inflation, to maintain its effectiveness over time. 
Revenues generated from the PlasTax will be allocated as follows:
1. 50% to the General Fund to support national development programs,
2. 30% to the Department of Environment and Natural Resources (DENR) 
for waste reduction and ecosystem protection initiatives, and
3. 20% to the Department of Science and Technology (DOST) and the 
Department of Trade and Industry (DTI) to support research, 
development, and promotion of reusable and biodegradable alternatives 
to plastic packaging.
Through this measure, the government signals its commitment to transition 
toward a circular economy, strengthen environmental fiscal reform, and promote 
responsible packaging practices that are equitable, scalable, and future-ready.
In view of the foregoing, the urgent passage of this bill is sought.
tOMN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE 
S. No. 811
fISi mnate
ol UK
25 AUG-4 PI -31
RECEIVED iJV,__
Introduced by Senator Loren Legarda
AN ACT
IMPOSING AN EXCISE TAX ON SPECIFIED TYPES OF SINGLE-USE PLASTIC 
PACKAGING MATERIALS, PROVIDING FOR ITS ADMINISTRATION, 
COLLECTION, AND ALLOCATION, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Tide. - This Act shall be known as the "PlasTax Act."
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Sec. 2. Declaration of Policy. - It is the policy of the State to protect and
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advance the right of the people to a balanced and healthful ecology and to fulfill its
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constitutional duty to safeguard the environment. In line with the Philippines'
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commitments under the Sustainable Development Goals and the Paris Agreement, the
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State recognizes the urgent need to reduce the environmental and health impacts of
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plastic pollution by discouraging the production and consumption of non-essential
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single-use plastics through fiscal measures. Revenues from such measures shall be
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directed towards sustainable environmental programs and alternative packaging
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development.
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Sec. 3. Definition of Terms. - For the purposes of this Act:
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a) Single-use plastics refer to plastic packaging materials that are designed
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to be used once and disposed of immediately after use. These include,
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but are not limited to:
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1. Sachets and pouches used for food, beverage, shampoo,
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detergent, and similar products;
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2. Plastic film packs and wrappers, whether flexible or semi-rigid;


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3. Carry-out plastic bags, including flat bags and bags with handles,
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whether made from virgin or recycled plastic; and
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4. Other plastic packaging that cannot be refilled, reused, or
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composted.
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b) Manufacturer refers to any person, natural or juridical, engaged in the
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production or packaging of products using single-use plastic materials
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covered under this Act; and
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c) Importer refers to any person, natural or juridical, that brings into the
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Philippines any single-use plastic materials or plastic-packaged goods
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covered under this Act for sale, distribution, or commercial use.
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Sec. 4. Imposition of Excise Tax on Singie-Use Piastics.
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a) There shall be levied, assessed, and collected an excise tax of One
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Hundred Fifty Pesos (P150.00) per kilogram on single-use plastic
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packaging materials as defined in Section 3(a) of this Act;
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b) The excise tax shall apply to:
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1. Manufacturers producing goods in the Philippines using single-use
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plastic packaging; and
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2. Importers of single-use plastic packaging materials or goods pre-
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packaged in single-use plastics.
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c) Indexation to Inflation - The excise tax imposed under this Act shall be
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adjusted every three (3) years based on the average annual inflation
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rate for the immediately preceding three-year period, as officially
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published by the Philippine Statistics Authority (PSA). The adjustment
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shall be made by the Department of Finance (DFA) through a
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Department Order, in consultation with the Bureau of Internal Revenue
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(BIR) and the Department of Environment and Natural Resources
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(DENR). Such adjustment shall take effect on the first day of the
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following fiscal year after its publication.
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Sec. 5. Exemptions. - The following shall be exempt from the imposition of the
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excise tax:
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a) Single-use plastic packaging materials used exclusively for:


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1. Medicines and medical devices, including packaging for 
pharmaceutical products, vaccines, and diagnostic kits;
2. Disaster relief and humanitarian aid, as certified by the 
Department of Social Welfare and Development (DSWD);
3. Products that require plastic packaging to preserve sterility, 
safety, or extended shelf life as determined by the Food and Drug 
Administration (FDA) and the DENR.
b) Compostable or biodegradable plastic packaging certified by the DENR 
and Department of Trade and Industry (DTI) as meeting internationally 
recognized biodegradability standards.
Sec. 6. Registration and Compliance Requirements.
a) All manufacturers and importers of single-use plastic packaging 
materials or products using such packaging shall register with the 
Bureau of Internal Revenue (BIR) and secure a Permit to Operate under 
this Act; and
b) Registered entities shall:
1. Submit a quarterly report of volumes produced or imported;
2. Maintain accurate records of production, importation, and sales;
3. Affix markings or declarations on product packaging to denote 
tax compliance, as may be required by the BIR.
Sec, 7. Penalties.
a) Any person who fails to register as required under this Act shall be 
subject to a fine of not less than Five Hundred Thousand Pesos (PHP 
500,000.00) and/or imprisonment of not less than six (6) months but 
not more than two (2) years;
b) Any manufacturer or importer who misdeclares or underreports the 
volume of single-use plastic packaging materials shall be liable for:
1. Payment of back taxes and surcharges equivalent to fifty percent 
(50%) of the deficiency; and
2. An administrative fine of One Million Pesos (PHP 1,000,000.00) 
for each act of violation.


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c) Entities found guilty of repeated violations may have their business
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licenses revoked, subject to due process.
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Sec. 8. Use of Revenues. - The revenues generated from the excise tax under
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this Act shall be allocated as follows:
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a) Fifty percent (50%) to the National Government for general revenue
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purposes under the annual General Appropriations Act;
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b) Thirty percent (30%) shall be earmarked for the DENR for the
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implementation of plastic waste reduction, circular economy initiatives,
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and coastal and marine ecosystem protection programs;
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c) Twenty percent (20%) shall be allocated to the Department of Science
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and Technology (DOST) and DTI for the research and development of
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sustainable, reusable, and biodegradable alternatives to single-use
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plastics.
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Sec. 9. Implementing Rules and Regulations. - Within ninety (90) days from
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the effectivity of this Act, the BIR, in coordination with the DENR, DTI, FDA, and the
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Bureau of Customs (BOC), shall promulgate the necessary rules and regulations for
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the effective implementation of this Act.
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Sec. 10. Separability Clause. - If any provision of this Act shall be held
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unconstitutional, the remainder of this Act not otherwise affected shall remain in full
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force and effect.
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Sec. 11. Repealing Clause. - All laws, executive orders, presidential decrees,
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rules, and regulations, or parts thereof inconsistent with any provisions of this Act are
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hereby repealed, amended, or modified accordingly.
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Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,