Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 747

Introduced by Representative Harlin Cast, Abayon

EXPLANATORY NOTE

This bill seeks to provide a system of tax incentives to corporations, partnerships,
organizations and other juridical entities for their support of the use of environment-friendly
bags,

This measure was previously filed by Senator Manny Villar in the 15" Congress. Passage
of this bill is earnestly sought now in the 16" Congress.

S—
HARLIN CAST. ABAYON
Representative
First District of Northern Samar


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SIXTEENTH CONGRESS
First Regular Session

747

HOUSE BILL NO.

Introduced by Representative Harlin Cast. Abayon

ANACT
GRANTING TAX INCENTIVES TO CORPORATIONS, PARTNERSHIPS,
ORGANIZATIONS, AND OTHER JURIDICAL ENTITIES FOR USING AND.
PROMOTING THE USE OF ENVIRONMENT-FRIENDLY BAGS, SUPPORTING
SUCH EFFORTS AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the "Green Tax Incentives Act of
2013."

SECTION 2. Declaration of Policy. - It is 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. However, protection of the environment cannot be achieved without the aid of the private
sector. As such, the State recognizes the indispensable role of the private sector and encourages
its full participation and cooperation in achieving its goal of environmental protection and
preservation. Environmental protection and preservation is for the common good and should be
the concer of all. Local efforts of environmental significance may and can be beneficial not
only to our nation, but to the world as a whole as we maintain ecological balance in pursuit of
sustainable development.

SECTION 3. Definition of Terms. The following terms when used in this Act shall
a. "Bureau! - the Bureau of Internal Revenue (BIR);
b. "Consumer" - any person who makes a purchase at retail for any purpose
other than resale;
¢. "Department" - the Department of Trade and Industry (DTD;
d. "Environment-friendly Bag" - a type of bag that benefits the environment in
some way, including but are not limited to those made from recycled products,
repurposed products, sustainable materials, and organic materials:
€, "Plastic Bag” - any plastic, latex, or polypropylene carry-out bag provided by the store


to a consumer at the point of sale;
f. "Reusable Bag" - a bag with handles that is specifically designed and manufactured for
multiple re-use and meets all the following requirements

1,) Has a minimum lifetime of 125 uses, which, for purposes of this subsection,
means the capability of carrying a minimum of 22Ibs, or 15 liters, 125 times over
a distance of at least 175 feet;

2.) Is machine washable;

3.) Does not contain lead, cadmium, or any other heavy metal in toxic amounts;
4,) Is labeled "Reusable" on the front and/or back of the bag in lettering at

least one inch in height.

SECTION 4. Scope. - Corporations, partnerships, organizations, and other juridical entities
Which support this effort by participation and cooperation shall be given tax incentives.

SECTION 5. Procedure. - Such corporations, partnerships, organizations, and other juridical
entities mentioned in preceding section shall collate and file the necessary documentation to
prove that they haye been using, promoting and supporting environment-friendly bags. The same
shall be submitted to the Department of Trade and Industry (DTI) for proper evaluation, Upon
findings by the Department that such corporation, partnership, organization, or juridical entity
has satisfactorily proven that they have been using, promoting and supporting environment-
friendly bags, then a certificate of compliance shall be issued and which will be attached to the
tax return to be submitted to the Bureau in order to avail of the tax incentives

SECTION 6. Tax Incentives. - The following tax incentives shall be enjoyed by corporations,
partnerships, organizations and other juridical entities which use, promote, and support the use of
environment-friendly bags

a. In computing the taxable income, the above-mentioned entities may claim as
deduction, expenses in producing, procuring, or purchasing environment-friendly bags
during the taxable year, provided, that such production, procurement, or purchase of said
bags is not the primary business of the juridical entity;

b, Newly created juridical entities may, within three (3) years from incorporation, be
exempt from the Expanded Value Added Tax (EVAT) on the production, procurement or
purchase of environment-friendly bags;

SECTION 7. Exception. - This Act shall not be applicable to corporations, partnerships,
organizations and other juridical entities whose primary business is the production, manufacture,
and distribution of environment-friendly bags.

SECTION 8. Determination of Rules and Regulations. - Additional rules and regulations which
will further the purpose of (his Act may be determined, formulated, and implemented by the
Department through its Secretary.

SECTION 9. Separability Clause. - If any provision or part hereof, is held invalid or


unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting,

SECTION 10. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or is inconsistent

with the provision of this Act is hereby repealed, modified, or amended accordingly

SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved