EIGHTEENTH CONGRESS OF THE) 
REPUBQC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE.
S.B. No.
IE431
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING AN ECONOMIC RECOVERY PACKAGE TO BUSINESSES IN 
THE HARDEST HIT SECTORS BY THE CORONAVIRUS DISEASE 2019 
(COVID-19), APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II Section 9 of the 1987 Constitution provides that the State "mil 
ensure the prosperity and independence of die 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 for all." 
Section 20 of tjie same article further states that, nthe State recognizes the 
indispensable role of the private sector, encourages private enterprise, and provides 
incentives to needed investments".
The World Health Organization declared a pandemic in 11 March 2020. 
Following the declaration, the entire Luzon was placed under an enhanced 
community quarantine (ECQ) to contain the transmission of the virus on 16 March 
2020. The ECQ restricted the movement of the population by suspending public 
transport, mandating a skeletal workforce, and temporary closures oVxnon-essentiaf 
businesses. Essential businesses allowed to operate were limited to hospitals, drug 
stores, groceries, food, utilities, financial institutions, and media.
The ECQ severely hampered the economic activity of Luzon, which is 
responsible for 70% of the economic activity of the country. On the labor sector, 
about seven million daily wage earners are economically displaced by the temporary 
shutdown of the economy. On the business sector, many nnon-essentiaf businesses 
generated no revenue but incurred payroll costs as they continue to pay their 
employees. Based on the Labor Force Survey (LFS), the total payroll cost for these 
workers amount to Php 3 billion per day or Php 63 billion per month.


Certain sectors were so severely hot by the economic fall-out of the pandemic 
that their future recovery has been put into serious doubt. For example, tourism is 
among those sectors directly and hardest hit by COVID-19. The Department of 
Tourism (DOT) estimated that the tourism industry would lose Php 42.9 billion in 
revenue for the next three months due to a 1.42 million reduction in tourist arrivals. 
The Air Carriers Association of the Philippines (ACAP) lost Php 3 billion for flight 
refunds alone due to the travel ban resulting in the cancellation of 32 routes before 
the ECQ. Given the linkages of the tourism sector to travel, hotel, restaurant and 
other sectors of the economy and its indirect effect on almost one-third of the 
workers in the Philippine economy, government assistance, in one way or another, 
has been urgently sought.
Through R.A. No. 11469, also known as the "Bayanihan to Heal as One Act', 
the President has been given the full gamut of funding sources, great budget 
flexibility and full enforcement powers. What this bill seeks is the planning and 
programming of those funds and powers for the utmost benefit and universal 
welfare of the youth and the Filipino people. The bill seeks to propose an economic 
recovery package to support businesses in retaining their employees in this time of 
crisis by providing a direct wage subsidy of 75% of actual payroll cost to employees 
of affected businesses which are in the hardest hit sectors, as may be determined by 
the lATF, in coordination with the local government units (LGUs). It also attempts a 
wide-ranging review of industrial policy and maximum regulatory forbearance, all to 
be monitored ancj overseen weekly by Congress.
Given the abovementioned health and economic emergencies, the immediate 
passage of this bill is earnestly sought.
IMEE R. MARCOS


EIGHTEENTH CONGRE^ OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
w»
SENATE
S.B. No. 1 481
P?. 'io A9m6
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING AN ECONOMIC RECOVERY PACKAGE TO BUSINESSES IN 
THE HARDEST HIT SECTORS BY THE CORONAVIRUS DISEASE 2019 
(COVID-19), APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled
Section 1. Short Tide. - This Act shall be known as the Economic Recovery 
Act of2020."
Section 2. Declaration of Policy. - It is hereby declared a policy of the State to
support businesses and workers affected by the COVID-19 pandemic with the
objective of supporting employment, minimizing economic losses, and renewing 
♦
business confidence by carrying out an economic recovery package.
Section 3. Implementation and Supervision. - The economic protection and 
recovery package shall be under the Office of the President of the Philippines, in 
coordination with the Inter-Agency Task Force (lATF).
Section 4. Labor Retention and Business Protection. - The economic recovery 
package shall contain a direct wage subsidy of 75% of actual payroll cost to 
employees of affected businesses which are in the hardest hit sectors, as may be 
determined by the lATF, in coordination with the local government units (LGUs).


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Section 5. Industrial Policy Measures - Industrial policies that impede the 
responses of businesses in coping with the economic effects of COVID-19 shall be 
revised accordingly, including, but not limited to, the immediate adoption of zero 
tariff rates on essential imported raw materials, which shall be facilitated by the lATF 
and In coordination with the Department of Trade and Industry (DTI), Tariff 
Commission, and the National Economic and Development Authority (NEDA). The 
DTI shall identify the raw materials that will be subject to zero tariff. Such tariff 
reduction shall be deemed temporary until the DTI recommends the permanent 
adoption of zero rates. Provided that, the DTI, in consultation with the Anti-Red 
Tape Authority (ARTA), shall review existing industrial policies and will recommend 
the removal or revision of rules and regulations that do not support the goal of 
business continuity post COVID-19.
Section 6. Exercise of Regulatory Forbearance. - The lATF, in coordination 
with the Bureau of Internal Revenu (BIR), Securities and Exchange Commission 
(SEC), Philippine Competition Commission (PCC), and other relevant regulatory 
agencies shall direct to suspend deadlines for all payments and submissions due 
within the ECQ period and extend due dates accordingly. For the Fiscal Year 2020, 
businesses may file all tax payments with the BIR until six (6) months after the 
lifting of the ECQ with no penalty. Provided that, the lATF shall streamline the 
process for new businesses applying for registration after the enactment of this Act, 
including reducing timelines for requirements and reducing the permits necessary 
before the commencement of operations.
Section 7. Confirmation of Business Listings by Local Government Units. - The 
list of qualified businesses shall be prepared and listed by the LGUs, in coordination 
with the lATF. The lATF shall be provided copy of the list of approved business 
establishments to receive the wage subsidy for verification.
Section 8. Monitoring of Economic Impact and Long-term Planning for 
Economic Resilience. - The lATF shall continue to estimate and monitor the impact


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of COVID-19 on the .economy, in order to ensure the proper use of funds, and, 
thereafter, submit a weekly report to Congress.
The lATF shall further submit to Congress a long-term plan for building 
economic resilience, not later than six (6) months after the lifting of the ECQ= The 
plan shall include a strategy for measuring and monitoring economic resilience and 
Identification of structural reforms needed to increase the ability of the economy to 
withstand shocks such as the COVID-19 pandemic.
Section 9. Confidentiality of Business Information. - Information concerning 
operations, production, sales, shipments, purchases, transfers, identification of 
customers, inventories, research and development, or amount or source of any 
income, profits, losses, or expenditures submitted by entities in order to apply 
and/or avail for the services under this Act shall not, in any manner, be directly or 
indirectly disclosed, published, transferred, copied, or disseminated.
Section 10. Implementing Rules and Regulations - The rules and regulations 
necessary for tjie Implementation of this Act shall be Issued within fifteen (15) days 
upon the implementation of this Act by the lATF.
Section 11. Repealing Clause. - All provisions of existing laws, orders, rules 
and regulations or parts thereof which are In conflict or inconsistent with the 
provisions of this Act are hereby repealed, amended or modified accordingly.
Section 12. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the remainder of the provisions thereof not affected shall 
remain in force and effect.
Section 13. Effectivity Clause. -This Act shall take effect Immediately upon its 
publication in a newspaper of general circulation or in the Official Gazette.
Approved,