Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. 22 0

Introduced by Representatives
MIKAELA ANGELA B. SUANSING and HORACIO P. SUANSING, JR.

AN ACT
IMPOSING EXCISE TAX ON PLASTIC BAGS, THEREBY ADDING A NEW
SECTION, DESIGNATED AS SECTION 150-C, IN THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED

EXPLANATORY NOTE

The use of plastic bags as means of transporting fresh produce, meat, clothing, and other
consumption goods has become customary in the conduct of trade not only in the Philippines,
but in other countries as well. With their relatively low cost, versatility and durability, it is no
surprise that millions of citizens worldwide opt to utilize plastics. According to the United
Nations, about four (4) to five (5) trillion plastic bags are used annually for personal and
commercial purposes. '

However, this mass consumption of plastics, most of which are single-use, has had
significant detrimental effects on the environment. Among the four to five trillion plastic bags
that are used each year, billions of bags end up as litter in bodies of water. Given the toxicity
of plastic substances especially when ingested by humans and animals, these inland and water
waste in our oceans pose a grave threat to the very existence of ecosystems and the species that
populate them. It has been documented that plastic marine debris harm approximately 267
different species including sea turtles, dolphins, and whales, through entanglement and
ingestion of plastics. It has also been estimated that over 400,000 marine animals die annually
due to plastic pollution in our oceans.?

‘On the other hand, humans are constantly exposed to possible carcinogenic chemicals
that are used in the production of plastics, such as Bisphenol A (BPA). In most recent studies,
it is emphasized that this specific chemical can potentially be related to disruptions in gene
expression, thereby affecting the biological functions related to the body’s metabolism and
development, as well as disruptions in fertility and sexual maturation.>

* Beat Plastic Pollution. Retrieved from https://www.unenvironment.org/interactive/beat-plastic-pollution/

? Le Guern, C. (2018, March). When the Mermaids Cry: The Great Plastic Tide. Retrieved June 28, 2019, from
ttp://plastic-pollution.or
3 Mathieu-Denoncourt, Justine; Wallace, Sarah J.; de Solla, Shane R.; Langlois, Valerie S. (2014, November}.
er endocrine disruption: Highlighting developmental and reproductive effects in mammals and non-



To reduce its costly environmental impact, several countries have already imposed taxes on the
use of plastic bags, while others have even gone so far as to implement a total ban. Cities in
the United States, namely Washington D.C., San Francisco, CA, and Seattle, WA, have
dramatically reduced plastic pollution as a result of implementing taxes on plastic bags, curbing
plastic consumption by 85 percent, 72 percent and 78 percent, respectively. Canada has also
adopted waste-reducing policies, particularly the ban on plastic straws and on the distribution
of polystyrene foam cups and containers. Other countries such as India, Kenya, United
Kingdom, Australia and China have also enacted laws banning the use of plastic bags*

Despite the enactment of Republic Act No. 9003, or the Ecological Solid Waste
Management Act of 2001, the Philippines still remains as one of the countries with the highest
amount of plastic bag waste ending up in oceans. Based on the data from the Ocean
Conservancy, the country generates about 2.7 million metric tons of plastic waste and half a
million metric tons of plastic-waste leakage each year.’ Aside from the short- and long-term
consequences of plastic use in the environment and the health of humans and animals alike, the
consumption of plastics in the Philippines further magnifies the flooding problem that
10s endure, especially during the typhoon season.

Given these alarming concerns, it is therefore necessary that the Congress finally
address the environmental and human costs brought about by the proliferation of plastic bag
waste. As such, this bill seeks to impose a P20.00 excise tax per kilogram on plastic bags. By
imposing this levy, all stakeholders will be encouraged to explore and utilize environment-
friendly alternatives to single-use plastic bags given its detrimental effects on the individual.
Furthermore, this proposed measure aims to generate additional revenue for the government,
which shail be used exclusively for the implementation of the solid waste management plans
of local government units. This may include the acquisition of land for the construction and
operation of sanitary landfills, pursuant to Republic Act No. 9003, otherwise known as the
“Ecological Solid Waste Management Act of 2000”.

This measure was already approved on the Third and Final Reading during the 18"
Congress. As such, the immediate approval of this bill is earnestly sought.

HORAC UANSING, JR.

2nd District of Sultan Kudarat

mammalian aquatic species”, General and Comparative Endocrinology. Retrieved June 28, 2019, from
https://doi.org/10.1016/i vacen.2014.11,003,

“410 Cities and Countries Confronting Plastic Bag Pollution Head-On. Retrieved from
hhttps://www.earthday.org/2018/04/20/10-cities-and-countries-confronting-plastic-bag-pollution-head-on,
5 iid.

© 2018 World Environment Day: Philippines Wages War vs Plastic Waste. Retrieved from
bhttoy//environews.ph/waste/2018-world-environment-day-philippines-wages-war-vs-plastic-waste,

"Ibid,



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. 220

Introduced by Representatives
MIKAELA ANGELA B. SUANSING and HORACIO P. SUANSING, JR.

AN ACT
IMPOSING EXCISE TAX ON PLASTIC BAGS, THEREBY ADDING A NEW
SECTION, DESIGNATED AS SECTION 150-C, IN THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION I. Short Title. - This Act shall be known as the “Plastic Bags Tax Act.”

SEC, 2. Declaration of Policy. — \t is hereby declared the policy of the State to protect and
advance the right of the people to a balanced and healthful ecology in accord with the rhythm
and harmony of nature through the proper exercise of its power of taxation.

SEC. 3. A new section designated as Section 150-C of the National Internal Revenue Code of
1997, as amended, is hereby added to read as follows:

“SEC. 150-C. PLASTIC BAGS. —

(A) RATE AND BASE OF TAX. - THERE SHALL BE LEVIED, ASSESSED, AND
COLLECTED AN EXCISE TAX IN THE AMOUNT OF TWENTY PESOS (PHP20.00) FOR
EVERY KILOGRAM OF PLASTIC BAG REMOVED FROM THE PLACE OF
PRODUCTION OR RELEASED FROM THE CUSTODY OF THE BUREAU OF
CUSTOMS.

PLASTIC BAGS SHALL REFER TO SECONDARY LEVEL PLASTICS MADE OF
SYNTHETIC OR SEMISYNTHETIC ORGANIC POLYMER, COMMONLY KNOWN AS.
“LABO” OR “SANDO™ BAGS, WITH OR WITHOUT HANDLE, USED AS PACKAGING
FOR GOODS OR PRODUCTS.

(B) FILING OF RETURN AND PAYMENT OF EXCISE TAX ON PLASTIC BAGS. ~ THE
PROVISIONS OF SECTIONS 130 AND 131 OF THE NATIONAL INTERNAL REVENUE
CODE OF 1997, AS AMENDED, ON THE FILING OF RETURN AND PAYMENT OF
EXCISE TAX SHALL APPLY.

(C) NON-PAYMENT OF EXCISE TAX ~ NON-PAYMENT OF THE EXCISE TAX
IMPOSED UNDER THIS ACT SHALL BE SUBJECT TO THE PERTINENT PROVISIONS
UNDER TITLES VIII AND X OF THE NATIONAL INTERNAL REVENUE CODE OF



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1997, AS AMENDED, REGARDING COLLECTION OF UNPAID TAXES AND
IMPOSITION OF CORRESPONDING FINES, SURCHARGES, PENALTIES, AND
IMPRISONMENT OR CLOSURE OF BUSINESS.”

SEC. 4. Section 288 of the National Internal Revenue Code of 1997, as amended, is hereby
further amended to read as follows:

“SEC. 288. Disposition of Incremental AND OTHER Revenues. —

(A) xxx
(B) x
(©) xxx
(D) xxx
(E) xxx
(PF) xxx

(G) | REVENUES FROM THE EXCISE TAX ON PLASTIC BAG. ~

ONE HUNDRED PERCENT (100%) OF THE REVENUES COLLECTED FROM THE
EXCISE TAX ON PLASTIC BAGS SHALL BE ALLOCATED AND USED
EXCLUSIVELY FOR THE IMPLEMENTATION OF THE SOLID WASTE
MANAGEMENT PLANS OF LOCAL GOVERNMENT UNITS, WHICH MAY INCLUDE
THE ACQUISITION OF LAND FOR THE CONSTRUCTION AND OPERATION OF
SANITARY LANDFILLS, PURSUANT TO REPUBLIC ACT NO. 9003, OTHERWISE
KNOWN AS THE ‘ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000.”

SEC. 5. Implementing Rules and Regulations. ~ Within sixty (60) days from the effectivity
of this Act, the Secretary of Finance shall, upon the recommendation of the Commissioners of
the Bureau of Internal Revenue and the Bureau of Customs and, in consultation with the
Department of Environment and Natural Resources, issue and promulgate the necessary rules
and regulations for the effective implementation of this Act.

SEC. 6. Separability Clause. — \f any provision of this Act shall be held unconstitutional or
invalid, the other provisions not otherwise affected shall remain in full force and effect.

SEC. 7. Repealing Clause. — Alll laws, decrees, executive orders, rules, and regulations or parts
hereof which are contrary to or inconsistent with any provision of this Act are hereby repealed,
modified, or amended accordingly.

SEC. 8. Effectivity. — This Act shall take effect fifteen (15) days after its publication either in
the Official Gazette or in at least one (1) newspaper of general circulation.

Approved,