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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA AND 
HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Article II, Section 5 of the 1987 Constitution of the Republic of the Philippines provides 
that, “The maintenance of peace and order, the protection of life, liberty, and property, 
and the promotion of the general welfare are essential for the enjoyment by all the people 
of the blessings of democracy.”  
Section 21 of the same Constitution further states that “The preservation of peace and 
order within the regions shall be the responsibility of the local police agencies which shall 
be organized, maintained, supervised, and utilized in accordance with applicable laws. 
The defense and security of the regions shall be the responsibility of the National 
Government.”  
Despite the many steps involved in the purchase and licensing of guns, the number of 
gun related injuries and fatalities has remained high across the country. According to an 
interview with the head of the Office of the Special Envoy on Transnational Crime 
(OSETC) Ambassador Bruce Concepcion, an estimated 726,181 guns were unregistered 
in 2018. This number is based on the number of expired licenses in the Philippine National 
Police Firearms and Explosives Office (PNP FEO) data management system with the 
number likely to be higher. Meanwhile, gun amnesty programs of the government have 
seen varying levels of efficiency. In the same interview, Concepcion claimed that 
“Because they are held so often, unlicensed firearm owners don’t see them (gun amnesty 
programs) as a unique opportunity to legitimize or clear themselves of their holdings.”  
In regulating the proliferation of firearms, different jurisdictions abroad have pursued 
strategies pursuant to their respective legal frameworks and domestic concerns to varying 
levels of success.  
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The European Union, for example has issued and amended directives on the acquisition 
and possession of firearms. Meanwhile, other countries such as New Zealand and 
Australia implement gun bans or other ways of restricting ownership and possession.  
In the United States, however, various gun control laws are enforced at the state level but 
a Firearms and Ammunition Excise Tax (FAET) is imposed at the federal level. Revenues 
collected from this tax are used to fund the Pittman-Robertson Wildlife Restoration Act of 
1937 which aims to aid the wildlife restoration fund, hunter safety programs, and 
maintenance and implementation of various programs of government-owned target 
ranges. 
Proactive local governments in the US have also made moves to localize gun control 
measures. In 2016, Seattle issued a Firearms and Ammunition Tax on guns and 
ammunition bought and sold in the city. The Tacoma City Council in Washington has also 
turned to tax to curb gun proliferation in November 2019. The ordinance shall come into 
effect in July 2020 and is expected to raise some US$30,000 annually to fund preventive 
programs.  
What gun bans do not address however is the negative externalities of gun proliferation.  
This bill uses a novel approach. Through a market-based strategy, this bill shall reduce 
the number of guns in circulation by raising the price of ownership while using tax revenue 
to actually promote preventive and capacity-building measures for the professionals 
responsible for regulating the gun industry in the country.  
This bill shall impose a ten (10) percent excise tax on handguns such as pistols and 
revolvers, and ammunition and accessories of such and an eleven (11) percent excise 
tax on firearms other than pistols and revolvers, as well as the ammunition and 
accessories of such.  
This bill also provides for the funding of peace and order programs for the country.  
In using a new market-based approach this bill seeks to address a gap in the country’s 
gun control legal framework. Restricting the manufacturing and sale of firearms only goes 
so far whereas taxation of firearms can go a long way towards promoting preventive 
measures while simultaneously decreasing gun proliferation.  
In view of the foregoing, the approval of this bill is earnestly sought. 
 
 
 
 
 
 
 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.             MIGUEL LUIS R. VILLAFUERTE   
 
 
TSUYOSHI ANTHONY G. HORIBATA  
 
 
NICOLAS ENCISO VIII 
 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA AND 
HON. NICOLAS ENCISO VIII 
AN ACT 
RATIONALIZING THE EXCISE TAX ON FIREARMS, AMMUNITION, AND 
ACCESSORIES THEREOF, AMENDING FOR THE PURPOSE THE NATIONAL 
INTERNAL REVENUE CODE OF 1997, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and House of Representatives of the Philippine Congress 
Assembled: 
Section 1. Short Title. – This act shall be known as “Firearms, Ammunition, and 
Accessories Tax Act” (FAAT).  
Section 2. Declaration of Policy. – It is the policy of the State to maintain peace and 
order and protect the people against violence. The State also recognizes the right of its 
qualified citizens to self-defense through, when it is the reasonable, means to repel the 
unlawful aggression under the circumstances, the use of firearms.  
Towards this end, the State shall hereby impose an excise tax upon the sales by the 
manufacturers, producers, or importers of Firearms Ammunition, and Accessories 
thereof.  
The state shall employ a market-based strategy to reduce the number of guns in 
circulation by effectively raising the price of ownership. Revenue generated by this policy 
shall be used to fund peace and order programs. 
Section 3 Definition of terms. – This Act shall adopt the definition of terms as used in 
REPUBLIC ACT No. 10591 AN ACT PROVIDING FOR A COMPREHENSIVE LAW ON 
FIREARMS AND AMMUNITION AND PROVIDING PENALTIES FOR VIOLATIONS 
THEREOF 
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“(a) Accessories - refer to parts of a firearm which may enhance or increase the 
operational efficiency or accuracy of a firearm but will not constitute any of the major or 
minor internal parts thereof such as, but not limited to, laser scope, telescopic sight and 
sound suppressor or silencer. 
(b) Ammunition - refers to a complete unfired unit consisting of a bullet, gunpowder, 
cartridge case and primer or loaded shell for use in any firearm. 
(c) Antique firearm - refers to any:  
(1) firearm which was manufactured at least seventy-five (75) years prior to the 
current date but not including replicas;  
(2) firearm which is certified by the National Museum of the Philippines to be curio 
or relic of museum interest; and  
(3) any other firearm which derives a substantial part of its monetary value from 
the fact that it is novel, rare, bizarre or because of its association with some 
historical figure, period or event. 
(d) Arms smuggling - refers to the import, export, acquisition, sale, delivery, movement 
or transfer of firearms their parts and components and ammunition, from or across the 
territory of one country to that of another country which has not been authorized in 
accordance with domestic law in either or both country/countries. 
(e) Authority to import - refers to a document issued by the Chief of the Philippine 
National Police (PNP) authorizing the importation of firearms, or their parts, ammunition 
and other components. 
(f) Authorized dealer - refers to any person, legal entity, corporation, partnership or 
business entity duly licensed by the Firearms and Explosive Office (FEO) of the PNP to 
engage in the business of buying and selling ammunition, firearms or parts thereof, at 
wholesale or retail basis. 
(g) Authorized importer - refers to any person, legal entity, corporation, partnership or 
business duly licensed by the FEO of the PNP to engage in the business of importing 
ammunition and firearms, or parts thereof into the territory of the Republic of the 
Philippines for purposes of sale or distribution under the provisions of this Act. 
(h) Authorized manufacturer - refers to any person, legal entity, corporation, or 
partnership duly licensed by the FEO of the PNP to engage in the business of 
manufacturing firearms, and ammunition or parts thereof for purposes of sale or 
distribution. 
(i) Confiscated firearm - refers to a firearm that is taken into custody by the PNP, National 
Bureau of Investigation (NBI), Philippine Drug Enforcement Agency (PDEA), and all other 
law enforcement agencies by reason of their mandate and must be necessarily reported 
or turned over to the FEO of the PNP. 
(j) Demilitarized firearm - refers to a firearm deliberately made incapable of performing 
its main purpose of firing a projectile. 
(k) Duty detail order - refers to a document issued by the juridical entity or employer 
wherein the details of the disposition of firearm is spelled-out, thus indicating the name of 
the employee, the firearm information, the specific duration and location of posting or 


 
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assignment and the authorized bonded firearm custodian for the juridical entity to whom 
such firearm is turned over after the lapse of the order. 
(l) Firearm - refers to any handheld or portable weapon, whether a small arm or light 
weapon, that expels or is designed to expel a bullet, shot, slug, missile or any projectile, 
which is discharged by means of expansive force of gases from burning gunpowder or 
other form of combustion or any similar instrument or implement. For purposes of this Act, 
the barrel, frame or receiver is considered a firearm. 
(m) Firearms Information Management System (FIMS) - refers to the compilation of all 
data and information on firearms ownership and disposition for record purposes. 
(n) Forfeited firearm - refers to a firearm that is subject to forfeiture by reason of court 
order as accessory penalty or for the disposition by the FEO of the PNP of firearms 
considered as abandoned, surrendered, confiscated or revoked in compliance with 
existing rules and regulations. 
(o) Gun club - refers to an organization duly registered with and accredited in good 
standing by the FEO of the PNP which is established for the purpose of propagating 
responsible and safe gun ownership, proper appreciation and use of firearms by its 
members, for the purpose of sports and shooting competition, self-defense and collection 
purposes. 
(p) Gunsmith - refers to any person, legal entity, corporation, partnership or business duly 
licensed by the FEO of the PNP to engage in the business of repairing firearms and other 
weapons or constructing or assembling firearms and weapons from finished or 
manufactured parts thereof on a per order basis and not in commercial quantities or of 
making minor parts for the purpose of repairing or assembling said firearms or weapons. 
(q) Imitation firearm - refers to a replica of a firearm, or other device that is so 
substantially similar in coloration and overall appearance to an existing firearm as to lead 
a reasonable person to believe that such imitation firearm is a real firearm. 
(r) Licensed citizen - refers to any Filipino who complies with the qualifications set forth 
in this Act and duly issued with a license to possess or to carry firearms outside of the 
residence in accordance with this Act. 
(s) Licensed juridical - entity refers to corporations, organizations, businesses including 
security agencies and local government units (LGUs) which are licensed to own and 
possess firearms in accordance with this Act. 
(t) Light weapons - are: Class-A Light weapons which refer to self-loading pistols, rifles 
and carbines, submachine guns, assault rifles and light machine guns not exceeding 
caliber 7.62MM which have fully automatic mode; and Class-B Light weapons which refer 
to weapons designed for use by two (2) or more persons serving as a crew, or rifles and 
machine guns exceeding caliber 7.62MM such as heavy machine guns, handheld 
underbarrel and mounted grenade launchers, portable anti-aircraft guns, portable anti-
tank guns, recoilless rifles, portable launchers of anti-tank missile and rocket systems, 
portable launchers of anti-aircraft missile systems, and mortars of a caliber of less than 
1OOMM. 
(u) Long certificate of registration - refers to licenses issued to government agencies or 
offices or government-owned or controlled corporations for firearms to be used by their 


 
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officials and employees who are qualified to possess firearms as provided in this Act, 
excluding security guards. 
(v) Loose firearm - refers to an unregistered firearm, an obliterated or altered firearm, 
firearm which has been lost or stolen, illegally manufactured firearms, registered firearms 
in the possession of an individual other than the licensee and those with revoked licenses 
in accordance with the rules and regulations. 
(w) Major part or components of a firearm - refers to the barrel, slide, frame, receiver, 
cylinder or the bolt assembly. The term also includes any part or kit designed and intended 
for use in converting a semi-automatic burst to a full automatic firearm. 
(x) Minor parts of a firearm - refers to the parts of the firearm other than the major parts 
which are necessary to effect and complete the action of expelling a projectile by way of 
combustion, except those classified as accessories. 
(y) Permit to carry firearm outside of residence - refers to a written authority issued to 
a licensed citizen by the Chief of the PNP which entitles such person to carry his/her 
registered or lawfully issued firearm outside of the residence for the duration and purpose 
specified in the authority. 
(z) Permit to transport firearm - refers to a written authority issued to a licensed citizen 
or entity by the Chief of the PNP or by a PNP Regional Director which entitles such person 
or entity to transport a particular firearm from and to a specific location, within the duration 
and purpose in the authority. 
(aa) Residence refers to the place or places of abode of the licensed citizen as indicated 
in his/her license. 
(bb) Shooting range refers to a facility established for the purpose of firearms training 
and skills development, firearm testing, as well as for sports and competition shooting 
either for the exclusive use of its members or open to the general public, duly registered 
with and accredited in good standing by the FEO of the PNP. 
(cc) Short certificate of registration refers to a certificate issued by the FEO of the PNP 
for a government official or employee who was issued by his/her employer department, 
agency or government-owned or controlled corporation a firearm covered by the long 
certificate of registration. 
(dd) Small arms refer to firearms intended to be or primarily designed for individual use 
or that which is generally considered to mean a weapon intended to be fired from the 
hand or shoulder, which are not capable of fully automatic bursts of discharge, such as: 
 
(1) Handgun which is a firearm intended to be fired from the hand, which 
includes: 
 
 
(i) 
A pistol which is a hand-operated firearm having a chamber 
integral with or permanently aligned with the bore which may be 
self-loading; and 
 


 
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(ii) 
Revolver which is a hand-operated firearm with a revolving 
cylinder containing chambers for individual cartridges. 
(2) Rifle which is a shoulder firearm or designed to be fired from the shoulder that 
can discharge a bullet through a rifled barrel by different actions of loading, which 
may be classified as lever, bolt, or self-loading; and 
(3) Shotgun which is a weapon designed, made and intended to fire a number of 
ball shots or a single projectile through a smooth bore by the action or energy 
from burning gunpowder. 
(ee) Sports shooting competition - refers to a defensive, precision or practical sport 
shooting competition duly authorized by the FEO of the PNP. 
(ff) Tampered, obliterated or altered firearm - refers to any firearm whose serial number 
or other identification or ballistics characteristics have been intentionally tampered with, 
obliterated or altered without authority or in order to conceal its source, identity or 
ownership. 
(gg) Thermal weapon sight - refers to a battery operated, uncooled thermal imaging 
device which amplifies available thermal signatures so that the viewed scene becomes 
clear to the operator which is used to locate and engage targets during daylight and from 
low light to total darkness and operates in adverse conditions such as light rain, light snow, 
and dry smoke or in conjunction with other optical and red dot sights.”  
Section 4. Amount of Tax. – There shall be levied, assessed and collected an ad 
valorem tax on firearms, ammunition, and accessories of such based on the authorized 
manufacturer’s or authorized importer’s selling price, net of excise and value-added 
taxes, in accordance with the following schedule:  
a. Articles taxable at ten (10) percent  
1. Pistols  
2. Revolvers 
3. Accessories for Pistols and Revolvers 
 
b. Articles taxable at eleven (11) percent  
1. Firearms (other than pistols and revolvers) 
2. Ammunition, Shells, and cartridges 
3. Accessories for firearms other than pistols and revolvers 
Section 5. Coverage and Fees. – FAAT shall be imposed on the authorized domestic 
manufacturer and authorized importers of firearms, ammunition, and accessories of such.  
Section 6. Exemptions. – Authorized manufacturers and authorized importers may sell 
firearms, ammunition, and accessories without payment of the FAAT for the following 
specific purposes or uses by the purchaser:   
a. Use by the purchaser for further manufacture; 
b. Resale by the purchase to a second purchase for use by such second 
purchaser in further manufacture; 
c. For export; 
d. Resale by the purchaser to a second manufacturer for export; 


 
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e. Use by the purchaser as supplies for vessels or aircraft; 
f. For the exclusive use and appropriation by the national government and its 
political subdivisions as well as departments in the conduct of governmental 
functions; and 
g. A nonprofit educational organization for its exclusive use.  
 
Provided that,  
 
a. Except for sales for export or for further manufacture, the manufacturer or 
importer must sell directly to the person or entity whose use is tax-free; 
b. All tax-free sales require that the manufacturer or importer inform the purchaser 
that the firearms or ammunition are being sold tax-free and that the purchaser is 
obtaining these articles tax-free for an exempt purpose under an exemption 
certificate or its equivalent; 
c. When a manufacturer or importer sells firearms or ammunition tax-free, the 
exempt purpose or use must precede any other use of the article by the 
manufacturer, importer, or tax-free purchaser; 
d. The purchase for further manufacture by a second purchaser, for export by the 
manufacturer or by a second purchaser will be tax-free only if the manufacturer 
or importer receives proof that the article has been resold for use in further 
manufacture or exported. The proof must be received within 6 months after the 
manufacturer or importer sells or ships the firearms or ammunition tax-free; 
e. The manufacturer or importer must have an approved Exemption Certificate; and 
f. Manufacturers and importers must maintain records to support all tax-free sales. 
Section 7. Disposition of Revenues Collected. – All revenues collected under this Act 
shall be used to fund peace and order programs to promote community security through:  
a. creating and sustaining capacity-building measures of the Philippine National 
Police (PNP);  
b. improving and modernizing the Firearms Information Management System (FIMS); 
c. developing and promoting research on gun violence prevention; 
d. supporting existing programs to aid communities in dealing with gun violence; 
e. promoting the safe and responsible use of firearms; and 
f. other projects or commitments that are related to the objectives of this Act. 
Section 8. Implementing Rules and Regulations. – The Department of Finance in 
coordination with the Armed Forces of the Philippines (AFP), the Firearms and Explosives 
Office (FEO) of the Philippine National Police (PNP), and the Department of Budget and 
Management (DBM) shall promulgate not later than thirty (30) days upon the effectivity of 
this Act the necessary rules and regulations for its effective implementation.  
Section 9. Separability Clause. – If any of the provisions of this Act is declared invalid 
by a competent court, the remainder of this Act or any provision not affected by such 
declaration of invalidity shall remain in force and effect. 
Section 10. Repealing Clause. – All laws, decrees ordinances, rules and regulations, 
executive or administrative orders and such other presidential issuances that are 


 
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inconsistent with any of the provisions of this Act are hereby repealed, amended or 
otherwise modified accordingly. 
Section 11. Effectivity. – This act shall take effect fifteen (15) days after publication 
either in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
 
 
Approved,