Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

RECEIVED
ome, 21 SEP 2016

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 8719

Introduced by HONORABLE SCOTT DAVIES S, LANETE, M.D.

EXPLANATORY NOTE

During the ancient times, salt (sodium chloride) was heavily taxed due to its importance in
various cuisines and rarity. However, as civilization improved, salt became more and more
available. Its ready availability placed it outside of states’ interest as subjects of “sin” taxes
‘Thus, at present, it is no longer subjected to heavy taxes,

But nowadays, salt has acquired a new image, It is now treated as a silent killer as its
consumption has a correlation with high blood pressure which consequently leads to
increased risks of having a heart attack and stroke.

Due to the harmful effects of salt, a significant number of countries has imposed “sin” taxes
on salt to deter people from consuming it. It is also a way for these states to pressure their
citizens into adopting a healthier diet. Among the countries that impose heavy taxes on salt
are Vietnam, Uganda, Tanzania, Suriname, Sri Lanka, Panama, Morocco, Kenya, Jordan,
Cambodia, etc.!

‘The 1987 Philippine Constitution enjoins the stale to protect and promote the right of health
of the people and instill health consciousness among, them, Thus, it is high time for the
Philippines to adopt strict measures in ensuring the safety and well-being of Filipinos
Imposing a tax on the production, sale and consumption of food products that have salt as an
ingredient will not only deter citizens from consuming more than the prescribed daily intake
but will also generate additional funds for the government

Therefore, the passage of this bill is urgently needed.

SOTT DAVIES S. LANETE, M.D.
Representative
‘Third District, Province of Masbate

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 87.19

Introduced by HONORABLE SCOTT DAVIES S. LANETE, M.D.

AN ACT AMENDING CERT
OTH

Be it

IN PROVISIONS OF REPUBLIC ACT NO. 8424,
WISE KNOWN AS THE “NATIONAL INTERNAL REVENUE CODE
OF 1997” AND FOR OTHER PURPOSES.

enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

See, I. Section | of Republic Act No. 8424 is hereby amended as follows:

C

151, Mineral Products. -

(A) Rates of Tax. - There shall be levied, assessed and collected on minerals,
mineral products and quarry resources, excise tax as follows

(1) On coal and coke, a tax of Ten pesos (P10,00) per metric ton:

(2) On all nonmetallic minerals and quarry resources, a tax of two percent
(2%) based on the actual market value of the gross output thereof at the time of
removal, in the case of those locally extracted or produced: or the value used
by the Bureau of Customs in determining tariff and customs duties, net of
excise tax and value-added tax, in the case of importation

Notwithstanding the provision of paragraph (4) of Subsection (A) of this
Section, locally extracted natural gas and liquefied natural gas shall not be
subject to the excise tax imposed herein

(3) On all metallic minerals, a tax based on the actual market value of the gross
output thereof at the time of removal, in the case of those locally extracted or
produced; or the value used by the Bureau of Customs in determining tariff
and customs duties, net of excise tax and value-added tax, in the case of
importation, in accordance with the following schedule;

(a) Copper and other metallic minerals:

(i) On the first three (3) years upon the effectivity of Republic Act No. 7729,
one percent (1%);


(ii) On the fourth and the fifth years, one and a half percent (1 1/2%); and
(iii) On the sixth year and thereafter, two percent (2%);
(b) Gold and chromite, two percent (2%)

(4) On indigenous petroleum, a tax of three percent (3%) of the fair
international market price thereof, on the first taxable sale, barter, exchange or
such similar transaction, such tax to be paid by the buyer or purchaser before
removal from the place of production, ‘The phrase 'first taxable sale, barter,
exchange or similar transaction’ means the transfer of indigenous petroleum in
ils original state to a first taxable transferee, The fair international market price
shall be determined in consultation with an appropriate government agency;

For the purpose of this Subsection, ‘indigenous petroleum’ shall include
Jocally-extracted mineral oil, hydrocarbon gas, bitumen, crude asphalt, mineral
gas and all other similar or naturally associated substances with the exception
of coal, peat, bituminous shale and/or stratified mineral deposits

(5)_On_manufactured_goods that _have_sodium chloride, or any of
derivatives, as an ingredient and which include but are not limited to canned
goods. processed food, and junk food, a tax of One peso (P1.00) shall be levied
on every milligram of sodium in excess of one third of the allowable daily
intake of sodium chloride as prescribed by the Department of Health

Sec. 2. The Department of Finance in coordination with other government agencies
concerned, shall promulgate not later than thirty (30) days from the effectivity of this Act, the
necessary rules and regulations for the effective implementation of this Act

Sec. 3. If any part or provision of this Act shall be held unconstitutional or invalid, other
provisions which are not affected thereby shall continue to be in full force and effect,

Seo. 4. All laws, issuances or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly,

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

Approved.