Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL No, 9445

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

Article VI, Section 28 (1) of the 1987 Philippine Constitution provides that the rule on
taxation shall be uniform and equitable. The Congress shall evolve a progressive
system of taxation.

The same Constitution further mandates the House of Representatives to enact
Tevenue-generating measures to fund the operation of the government. The citizens,
under the bloodline theory, are obligated to contribute to the cofferes of the
government.

Pursuant to the abovementioned provision, the bill seeks to a raise additional revenue
by imposing higher taxes on the purchase of luxury and non-essential items,

Such principle is just and equitable pursuant to the Progressive nature of taxation
mandated by the Philippine Constitution.

Accordingly, passage of the measure is eamestly sought.

SHARON. GARIN
AAMBIS-Owa Party-list


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House of Representatives
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5445

Introduced by Representative__Charon S- Gen’

AN ACT
EXPANDING THE LIST OF NON-ESSENTIAL GOODS SUBJECT TO EXCISE TAX.
AMENDING SECTION 150 OF THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED

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

SECTION 1. Section 150 of the National Internal Revenue Code, as amended is
hereby further amended to read as follows:

“SEC. 150. Non-essential goods -

(A) There shall be levied, assessed and collected (a) an AD VALOREM TAX
equivalent to twenty percent (20%) [based on] of the manufacturer's or
importer’s wholesale price [or the value if importation used by the Bureau of
Customs in determining tariff and customs duties; net of excise tax and Value
Added Tax,] INCLUDING THE AMOUNT INTENDED TO COVER THE AD
VALOREM TAX IMPOSED UNDER THIS SECTION AND THE AMOUNT
INTENDED TO COVER THE VALUE ADDED TAX IMPOSED UNDER TITLE
IV OF THIS CODE [of] ON the following goods:

[(a)](1) All goods commonly or commercially known as, jewelry, whether real
or imitation, pearls, precious and semi-precious stones and imitations thereof:
goods made of or ornamented, mounted or fitted with, precious metals or
imitations thereof of ivory (not including surgical and dental instruments, silver-
plated wares, frames or mountings for spectacles or eyeglasses, and dental
gold or gold alloys and other precious metals used in the filling mounting or
fitting of teeth); opera glasses and lorgnettes. The term “precious metals” shall


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include platinum, gold, silver and other metals of similar or greater value. The
term “imitations thereof shall include platings and alloys of such metals;

[(b)|(2) Perfumes and toilet water;

{(c)] (3) Yachts and other vessels [intended for pleasure or sports] FOR
PERSONAL OR RECREATIONAL USE, AND THEIR PARTS OR
ACCESSORIES;

(4) TEXTILES MADE OF WOOL OR OTHER FINE ANIMAL HAIR

(5) FURS AND MANUFACTURES THEREOF

(6) CELLULAR MOBILE PHONES, SMART PHONES, ANDROIDS AND
OTHER SIMILAR INSTRUMENTS AMOUNTING TO TWENTY THOUSAND
PESOS (PHP 20,000.00) AND ABOVE;

(7) WHIRL POOL BATH TUBS, JACUZZI AND OTHER SIMILAR TUBS;

(8) TELEVISION SETS WITH A DIAGONAL MEASUREMENT OF 43
INCHES AND ABOVE

(9) VIDEO GAMES OR VIDEO CONSOLES, HOME-THEATRE
EQUIPMENT, VIDEOGAME SYSTEMS, VIDEOKE MACHINES AND OTHER
SIMILAR GADGETS THAT CAN BE CONNECTED TO A SCREEN MONITOR
OR TV RECIEVER

(10) PRIVATE AIRCRAFTS (PLANES, HELICOPTERS AND OTHER
EQUIVALENT VEHICLES), AND PARTS EXCEPT THOSE FOR USE OF THE
PHILIPPINE GOVERNMENT OR BY AIRLINE COMPANIES;

(11) GOLF SETS, INCLUDING BAGS, CLUBS, CARTS, BALLS AND
OTHER EQUIPMENT

(12) EXCLUSIVE CLUB AND/OR RESORT MEMBERSHIPS

(13) HAND-HELD GADGETS SUCH AS TABLETS, IPADS AND OTHER
SIMILAR EQUIPMENT AMOUNTING TO TWENTY THOUSAND PESOS
(PHP 20,000.00) AND ABOVE

(14) POLO SETS

(15) SCUBA DIVING GEAR, WATER SKIING, SURFING AND ALL OTHER
REGATTA EQUIPMENT


(16) PIANOS, DRUM SETS ELECTRONIC ORGAN, ELECTRIC GUITAR,
ELECTRIC DRUM SETS AND SYNTHESIZERS, AMPLIFIERS, SPEAKERS.

(17) REFRIGIRATORS 15 CUBIC FEET AND ABOVE;

(18) LEATHER PRODUCTS SUCH AS BAGS, WALLETS, BELTS, SHOES.
AND OTHER SIMILAR ITEMS AMOUNTING TO MORE THAN (PHP.
20,000.00) TWENTY THOUSAND PESOS

(19) WRIST WATCHES AMOUNTING TO MORE THAN (PHP 50,000.00)
FIFTY THOUSAND PESOS

(20) COSMETIC AND OTHER FORMS OF SURGERY OR SERVICES.
FOR AESTHETIC PURPOSES

(21) E-CIGARETTES, JUICE, MACHINES AND ALL OTHER SIMILAR
GADGETS.

(22) EXPENSIVE PAINTINGS, SCULPTURES AND OTHER SIMILAR
ITEMS

(23) CHANDELIERS AND OTHER ELECTRICAL CEILING OR LIGHTING
EQUIPMENT

(24) SPORTING, HUNTING OR TARGET SHOOTING RIFLES,
INCLUDING SPARE PARTS AND ACCESSORIES;

(25) BODY BUILDING, EXERCISE AND SLIMMING MACHINES AND
EQIUPMENT, INCLUDING SPARE PARTS AND ACCESSORIES

(26) AUTOMOBILE RIMS, SIDE SKIRT, CHIN, SPOILER, MUFFLER,
TURBO ENGINE, HEAD LIGHTS, REAR LIGHTS, BACK UP SENSORS, CAR
ACCESSORIES AND ALL OTHER SIMILAR AFTER MARKET
IMPROVEMENTS FOR AUTOMOBILES; AND

(27) ANTIQUES

(B)THERE SHALL BE LEVIED, ASSESSED AND COLLECTED AN AD

VALOREM TAX EQUIVALENT TO TWO PERCENT (2%) ON THE SALE OR
TRANSFER OR EXCHANGE FOR VALUEABLE CONSIDERATION OF THE
FOLLOWING:

(1) RESIDENTIAL BUILDINGS, TOWN HOUSES AND CONDOMINIUM
UNITS WITH GROSS SELLING PRICE OR ZONAL VALUE, AS
DETERMINED BY THE BUREAU OF INTERNAL REVENUE, OF FIVE


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MILLION PESOS (PHP 5,000,000.00) OR MORE WHICHEVER IS
HIGHER

(2) SHARES AND MEMBERSHIPS IN GOLF AND OTHER SPORTS CLUBS,
RESORTS AND OTHER EXCLUSIVE CLUBS, BASED ON THE
PURCHASE PRICE OR FAIR MARKET VALUE, WHICHEVER IS
HIGHER, OF THE SHARE OR THE MEMBERSHIP FEE.

SEC. 2. Implementing Rules and Regulations. — Within thirty (30) days upon the
effectivity of this Act, the Secretary of Finance shall, upon recommendation of the
Commissioner of Internal Revenue, promulgate the necessary rules and regulations for
its effective implementation.

SEC. 3 Separability Clause. — \f any provision of this Act is subsequently declared
invalid or unconstitutional, other provisions hereof which are not affected thereby shall
remain in full force and effect.

SEC. 4 Repealing Clause. - All laws, acts, presidential decrees, executive orders,
issuances, presidential proclamations, rules and regulations or parts thereof which are
contrary to and inconsistent with any provision of this Act are hereby repealed, amended
or modified accordingly.

SEC. 5 Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette, or in two (2) newspapers of general circulation.

Approved,