REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Second Regular Session

House Bill No. 7659.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

A nation replete with well-educated citizens is doomed to fail, that’s why education is and
shall always be the primary prerogative of the State. The Constitution, likewise has expressly
provided that the State shall promote quality education at all levels and shall take the appropriate
steps to make education accessible to all Filipino citizens.

Budgetary constraints, however, has caused the establishment of a complete, adequate, and
integrated educational system to lag behind in development, despite the burgeoning demand for it.
‘There remains, across the country, education facilities severely lacking in various basic amenities
and poor families still unable to avail for their children, and sometimes even themselves a decent
learning experience.

Thus, this proposed measure aims to utilize 10% of VAT proceeds for the construction,
rehabilitation, repair, or replacement of elementary and secondary buildings and classrooms, which
shall surely help in addressing the crisis of classroom shortage and other such problems that plague
this country’s education system. It is also the goal of this bill to strengthen pre-school education by
providing funds to further develop the capacities of pre-school educational institutions. Scholarships
for indigent students in the field of science and engineering and technical courses are also provided
for.

The taxes that our people pay should be translated into concrete and effective public
services. Failure to do so is tantamount to plunder and the worst betrayal of public trust.

In view of the foregoing, immediate passage of this bill is earnestly sought.
.

ARY&. ALEJANO
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Magdalo Parsa sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bitt No.'7659

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
FINANCING THE “EDUCATION FOR ALL INITIATIVES” FROM THE ANNUAL
VALUE-ADDED TAX COLLECTIONS, 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 1. A new section, to be numbered two hundred and cighty-seven, shall be added

to Chapter II, Title XI of the National Internal Revenue Code, as amended to read as follows:

“SEC. 287. Disposition of Proceeds of Value-Added Tax.—TEN PERCENT (10%)
OF THE VALUE-ADDED TAX COLLECTED UNDER TITLE IV OF THIS ACT, AS
AMENDED, SHALL BE ALLOCATED TO THE FOLLOWING EDUCATION
EXPENDITURES AND CORRESPONDING PROPORTIONS:

1) THIRTY PERCENT (30%) SHALL BE ALLOCATED FOR THE
CONSTRUCTION OF BUILDINGS, CLASSROOMS, TOILETS, AND OTHER
STRUCTURES FOR PRESCHOOL EDUCATION, TO BE ADMINISTERED BY THE
DEPARTMENT OF EDUCATION;

2) TEN PERCENT (10%) SHALL BE ALLOCATED TO FUND THE
GOVERNMENT ASSISTANCE TO STUDENTS AND TEACHERS IN PRIVATE
EDUCATION (GASTPE) PROGRAM FOR PRESCHOOL EDUCATION, TO BE
ADMINISTERED BY THE DEPARTMENT OF EDUCATION;

3) TEN PERCENT (10%) SHALL BE ALLOCATED FOR ELEMENTARY
EDUCATION FOR THE ACQUISITION AND IMPROVEMENT OF SITES; THE
CONSTRUCTION, REPLACEMENT, REHABILITATION, AND REPAIR OF
BUILDINGS, CLASSROOMS, LIBRARIES, WORKSHOPS, TOILETS AND OTHER
STRUCTURES, TO BE ADMINISTERED BY THE DEPARTMENT OF EDUCATION;

4) THIRTY PERCENT (30%) SHALL BE ALLOCATED FOR SECONDARY
EDUCATION FOR THE ACQUISITION AND IMPORVEMENT OF SITES; THE
CONSTRUCTION, REPLACEMENT, AND REPAIR OF BUILDINGS, CLASSROOMS,


LIBRARIES, WORKSHOPS, TOILETS AND OTHER STRUCTURES, TO BE
ADMINISTERED BY THE DEPARTMENT OF EDUCATION;

5) TEN PERECENT (10%) SHALL BE ALLOCATED FOR SCHOLARSHIP
GRANTS FOR TECHNICAL EDUCATION AND SKILLS DEVELOPMENT IN THE
DIFFERENT REGIONS, AS PROVIDED FOR IN SECTION 32 OF REPUBLIC ACT NO.
7796, TO BE ADMINISTERED BY THE TECHNICAL EDUCATION AND SKILLS
DEVELOPMENT AUTHORITY (TESDA); AND.

6) TEN PERCENT (10%) SHALL BE ALLOCATED FOR SCHOLARSHIP
GRANTS FOR QUALIFIED INDIGENT STUDENTS ENROLLED IN SCIENCE AND
ENGINEERING COURSES TO BE ADMINISTERED BY THE COMMISSION ON
HIGHER EDUCATION.

SEC. 2. The succeeding Sections of the National Internal Revenue Code, as amended, are

hereby renumbered accordingly.

SEC. 3. Implementing Rules and Regulatiosn—The Department of Budget and

Management, Bureau of Internal Revenue, and Department of Education shall within thirty (30)
days from the effectivity of this Act issue the necessary rules and regulations for its effective
implementation.

SEC. 4. Repealing Clause.— All laws, decrees, orders, rules and regulations, or other

issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed.

SEC. 5. Effectivity.—This Act shall take effect fifteen (15) days after its publication in the

Official Gazette in at least two (2) newspapers of general circulation.

Approved,