FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
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INTRODUCED BY HONORABLE MAR R O U S  
EXPLANATORY NOTE 
The world has been gripped with fears of a global economic meltdown. The problem 
has been so severe that stock markets have fallen, large financial institutions have collapsed 
or been bought out, and governments in even the wealthiest nations have had to come up 
with rescue packages to bail out their financial systems and restore trust which has weakened 
considerably. Inescapably, the extent of these financial problems will affect the livelihoods of 
almost everyone in our increasingly inter-connected world. 
In fact, the Philippine stock market has already suffered the impact of the US 
economic slowdown. The Philippine Stock Exchange index has lost 42.08% of its value since 
the start of the year and continues to fall. Losses amounting to an estimated Php 15 Billion by 
6 Philippine banks resulted from the collapse of Lehman Brothers Incorporated. While this 
represents only 0.3% of the banking sector’s Php5 Trillion total assets, the real damage comes 
in the form of public distrust in the banking system and panic. Unfortunately, the impact of 
the global financial crunch doesn’t stop there. We continue to be vulnerable as we anticipate 
reduction in the flow of foreign direct investments and remittances from O m s .  Depression 
of stock market and tightening of credit from banks leading to decreased domestic 
investment spending will ultimately cause loss of jobs and lower household incomes. 
Clearly, now is the time to take the first important step toward meeting the need for 
confidence building initiatives against the financial crisis. Measures must be in place to 
strengthen the public’s trust in the banking system, and more importantly, to secure 
employment and income during these tough and trying times. 
Thus, this proposed measure seeks to introduce transitory measures that will provide 
small saver and consumer relief and stability, build confidence in the financial system and 
encourage job creation in the private sector. Specifically, a one-time stimulus income tax 
refund to the maximum amount of Php5,OOO.OO for all fixed income earners who paid 
income taxes is proposed. Likewise, a 90-day moratorium on home foreclosures is introduced 
to provide temporary relief to home buyers and the non-imposition of fees and charges as 
penalties for early withdrawal of short term deposits is proposed, with the intention of 
providing support to small saver households experiencing cash flow problems during these 
lean times. Finally, a 3-year program extending income tax credits for employers hiring 
additional regular or permanent employees is instituted under the proposed bill. Thus, for 
each additional regular or permanent employee hired for at least 1 year, any employer is 
entitled to a maximum income tax credit equivalent to 30 Yo of annual salary of said 


employee. The creation of this program will stimulate job creation even in lean times, at the 
same time rewarding employers who continue to see the longer term. 
We are warned that tough times are likely to be ahead. We hope that this will not be 
so. However, if it does come to pass, there will be no excuse if we find ourselves unprepared. 
In view of the foregoing, approval of this bill is earnestly requested. 
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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
INTRODUCED BY HONORABLE MAR ROXAS 
AN ACT 
INTRODUCING TRANSITORY MEASURES TO PROVIDE CONSUMER 
AND SMALL SAVER RELIEF, PROMOTE INDIVIDUAL ECONOMIC 
STABILITY AND BUILD INDIVIDUAL CONFIDENCE BY PROVIDING A 
STIMULUS TAX REFUND TO FIXED INCOME EARNERS, PROTECTING 
INTERESTS OF DEPOSITORS OF BANKS AND OF HOME OWNERS, AND, 
GIVING TAX CREDIT INCENTIVES TO EMPLOYERS WHO PROVIDE 
NEW PERMANENT JOBS, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of rhe Philippines in 
Congress assem bled 
SECTION 1. This act shall be known as the "Transito~~lndivd~EconomicStability 
and Confidence Building Measures Act o f Z m .  '' 
SECTION 2. 
One Time Income Tax Refund for All Fixed Income Earners. - 
Notwithstanding the provisions of Republic Act No. 8424, otherwise known as the National 
Internal Revenue Code, as amended, and other applicable laws, there shall be allowed a one 
time income tax refund for all fixed income earners to the maximum amount of Five 
Thousand Pesos (Php5,OOO.OO). In the event that the income tax due of the fixed income 
earner is less than the maximum amount of Five Thousand Pesos (Php5,000.00), then the one 
time tax refund shall be equal to the income tax due. This income tax refund shall be 
applicable only to calendar year ending in 2008. 
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The Department of Finance and the Bureau of Internal Revenue shall issue the 
appropriate implementing rules and regulations to govern this provision within a period of 
thirty (30) days from the effectivity of this Act. 
SECTION 3. Ninety Day Moratorium on Home Foreclosures. - Notwithstanding the 
provisions of Republic Act No. 9507, otherwise known as the Socialized and Low-Cost 
Housing Loan Restructuring and Condonation Act of 2008,” and, other applicable laws, there 
shall be a moratorium on foreclosure of homes, for a period of ninety (90) days from the 
effectivity of this Act. All relevant government agencies shall respect the right of home 
owners to be secure in their mortgaged homes during this ninety day (90) moratorium 
period. 
SECTION 4. Non-Imposition of Penalties for Early Withdrawal. - Notwithstanding 
the provisions of Republic Act No. 6753, otherwise known as The New Central Bank Act, as 
amended, and, other related laws, all banks shall not be allowed to impose any charges or 
fees representing penalties for early withdrawal by any depositor who decides to withdraw 
his money in whole or in part, unless such deposit was made for a period of five (5) years or 
more. 
SECTION 5. Income Tax Credits for Employers Who Hire Additional Regular or 
Permanent Employees. - Notwithstanding the provisions of Republic Act No. 8424, 
otherwise known as the National Internal Revenue Code, as amended, and other applicable 
laws, there shall be allowed, for any person who hires or employs one or more additional 
regular employees for at least one year, an income tax credit equivalent to thirty percent 
(30%) of the gross annual salary of each additional regular or permanent employee. Without 
prejudice to the applicability of such salary expense of said additional regular or permanent 
employees as a deduction against gross revenues of the employer in the computation of 
income tax due, this income tax credit may be automatically applied by the employer against 
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its income tax due. If after application of all the applicable income tax credits the income tax 
due is zero, then no income tax due shall be deemed payable and due. Any excess income tax 
credits may be carried over in the succeeding period. This treatment of income tax credit for 
additional regular or permanent employees shall be applicable for a period of three (3) years 
from the effectivity of this Act and shall apply for the whole of the last calendar year of the 
third year of the three year period. For the purpose of this Section, an additional regular or 
permanent employee shall refer to any person newly hired to provide services that are 
necessary or desirable in the usual business of a company in exchange for compensation and 
who does not provide these services as part of an independent business, Provided that the 
employment of such person should be for a newly created position in addition to the existing 
staffing requirements of the company. 
The Department of Finance and the Bureau of Internal Revenue shall issue the 
appropriate implementing rules and regulations to govern this provision within a period of 
thirty (30) days from the effectivity of this Act. 
SECTION 6. Separability Clause. - If, for any reason, any section or provision of this 
Act shall be held unconstitutional or invalid, the other section or provision not otherwise 
affected shall remain in full force and effect. 
SECTION 7. Repealing Clause. - All laws, presidential decrees, executive orders, 
proclamations, rules and regulations which are inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly. 
SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (15) days from its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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