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

Nineteenth Congress
First Regular Session
1176

HOUSE BILL NO. _

Introduced by Honorable Bryan B. Revilla

AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-
KILOMETER PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN
FERNANDO, LA UNION TO LEGAZPI CITY, ALBAY, PROVIDING
FUNDS FROM THE ANNUAL VALUE ADDED TAX COLLECTION,
AMENDING FOR THE PURPOSE THE NATIONAL INTERNAL
REVENUE CODE OF 1997, AS AMENDED

EXPLANATORY NOTE

An efficient railway system is one of the most cost-effective modes of commuting and
transporting goods. The Philippines presently have only a few unconnected railway systems.
‘There is the rapid transit systems of the Manila Light Railway Transit (LRT) and the Metro
Manila Rail Transit (MRT) which both serve passengers in Metro Manila, Then there is the
Philippine National Railways (PNR) which operate a Metro and Bicol Commuter Line. This
representation sees great potential for our railways system, especially for the Philippine
National Railways, in aiding rural development and tangibly improving the lives and outcomes

of Filipinos


Every day, thousands of Filipinos rely on the Philippine National Railways to take them
to their work and schools. Yet, passengers are met by trains that are late, cramped, warm, and
do not represent what ought to be a symbol of national industrial development. Today, the
Philippine National Railways still fail to fully service its coverage areas and still fail to connect
the North of Luzon, NCR, and the Bicol region. Despite decades of efforts, the Philippine
National Railways has failed to place itself at the forefront of national industrial development.

This measure seeks to allocate five percent (5%) of annual value-added tax (VAT)
collection to the construction and rehabilitation of the existing 479-kilometer stretch of the
Philippine National Railways (PNR) lines from San Fernando, La Union to Legazpi City,
Albay

This interconnection of the whole of Luzon through a railway system will usher in
development not only in the NCR urban areas but more so of the countryside. This will also

provide employment opportunities to our fellow Filipinos

In view of the foregoing reasons, the approval of this bill is earnestly sought.

B. REVILLA
Representative
AGIMAT Pantylist



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

Nineteenth Congress
First Regular Session
117€

HOUSE BILL NO. _*

Introduced by Honorable Bryan B. Revilla

AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA
UNION TO LEGAZPI CITY, ALBAY, PROVIDING FUNDS FROM THE
ANNUAL VALUE ADDED TAX COLLECTION, AMENDING FOR THE
PURPOSE THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS
AMENDED

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

SECTION |. A new section, to be numbered two hundred eighty-seven (287), shall be added to
Chapter Il, Title X1 of the National Internal Revenue Code, as amended to read as follows:

“SEC. 287. DISPOSITION OF PROCEEDS OF VALUE ADDED TAX — A.)
TWO AND A HALF PERCENT (2.5%) OF THE VALUE ADDED TAX
COLLECTED UNDER TITLE IV OF THIS ACT, AS AMENDED, SHALL
BE ALLOCATED TO RECONSTRUCT AND REHABILITATE THE
EXISTING 479-KILOMETER PHILIPPINE NATIONAL RAILWAYS
LINE FROM SAN FERNANDO, LA UNION TO LEGAZPI CITY,
ALBAY;

B.) TWO AND A HALF PERCENT (2.5%) OF THE VALUE ADDED TAX
COLLECTED UNDER TITLE IV OF THIS ACT AS AMENDED SHALL
BE ALLOCATED FOR THE ACQUISITION OF ROAD RIGHT OF WAY


NEEDED TO IMPLEMENT THE PROJECT MENTIONED IN THE
PRECEDING PARAGRAPH,

THE ALLOCATION SHALL BE ADMINISTERED BY THE
DEPARTMENT OF TRANSPORTATION (DOTr), THROUGH ITS
ATTACHED AGENCY PHILIPPINE NATIONAL RAILWAYS (PNR).”

Sec. 2. The succeeding Section of the National Internal Revenue Code as amended are

hereby numbered accordingly.

SEC. 3. Implementing Rules and Regulations. — The Department of Budget and
Management, in coordination with the Department of Finance, Bureau of Internal Revenue, DOTr
and PNR shall, within thirty (30) days from the effectivity of this Act, promulgate the rules and

regulations to effectively implement the provision of this Act
SEC. 4. Repealing Clause. — Any law, presidential decree or issuance, executive order, letter
of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or

modified accordingly

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

Approved,