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 
Under Article II, Section 16 of the 1987 Constitution of the Republic of the 
Philippines, the State is mandated “to protect and advance the right of the people 
to a balanced and healthful ecology in accord with the rhythm and harmony of 
nature.” Concretely, the constitutional provision directs the government to craft 
public policies that promote sustainable and ecologically advantageous 
programs.  
Several studies world-wide recognize that batteries create a particular challenge 
to the management of solid and other wastes. Batteries usually contain heavy 
metals, lead acid accumulators, and sulphuric acid which have the potential to 
cause extensive harm if disposed through either landfills or through incineration.  
Alkaline or disposable batteries also come in small dimensions that require more 
delicate and costlier collection processes from municipal waste streams.  
With the use of mobile electronic equipment containing built-in batteries unlikely to 
decline in the foreseeable future, the continued production, circulation, and 
constant upgrading of these equipment and their component battery parts also 
demand more technical, advanced, and expensive public mechanisms for the 
collection and processing of electronic waste. 
To finance these interventions, jurisdictions abroad have sought recourse to the 
State’s power of taxation. In Belgium for example, a general tax is imposed on all 
kinds of batteries sold without any distinction. Meanwhile, in Italy batteries are 
taxed according to its mercury, manganese and lead-acid content.  
In recent years, ecological taxation is a common instrument used by different State 
authorities in order to create economic incentives arising from environmental-
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friendly activities. This is usually levied on activities or products that are known to 
be harmful to the environment/ ecology. Underlying this approach is the idea that 
the change in consumer behavior would feed back into the economic system and 
eventually change the producer behavior. The overall objective is to reduce 
pollution and encourage use of alternatives. This kind of policy complements the 
need for regulatory (command and control) campaigns while enforcing efforts from 
the producers and consumers to adapt to their behavior. 
 
This Act shall impose an Ecotax on Rechargeable Batteries which shall be equal 
to one percent (1%) and Disposable Batteries and Other Products with similar 
contents which shall be equal to three percent (3%) of the actual sale price as 
defined herein. The Ecotax shall cover battery manufacturers, producers and 
importers.  
 
It is in the interest of the Filipino people to live in a country where advancements 
in and inclusive access to technology do not pose significant threats to the 
ecological system.  
 
In view of the foregoing, the immediate 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 IMPOSING ECOTAX ON BATTERIES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title. – This act shall be known as “BATTERIES ECOTAX 
ACT”. 
SECTION 2. Declaration of Policy. – It is a declared policy that the State shall 
protect and advance the right of the people to a balanced and healthful ecology in 
accord with the rhythm and harmony of nature.  
Thereby, the State is mandated to create policies that shall reduce environmental 
pollution, decrease toxicity of waste materials by encouraging recycling and 
minimizing the disposal of used batteries and other products with similar content 
that are sold or stored in the Philippines. 
The right to a balanced and healthful ecology carries with it the correlative duty to 
refrain from impairing the environment. 
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SECTION 3. Definition of Terms. – For purposes of this Act, the following 
definitions shall apply to the following terms: 
 
a. Battery Manufacturer. – every person, firm or corporation that: (i) 
produces rechargeable batteries sold or distributed in the Philippines, or 
packages such batteries for sale in the Philippines, except that if such 
production or packaging is for a distributor having the right to produce or 
otherwise package that same brand of battery in the Philippines, then 
such distributor shall be deemed to be the battery manufacturer, or (ii) 
imports rechargeable batteries that are sold or distributed in the 
Philippines.  
b. Rechargeable battery. – any rechargeable nickel-cadmium, sealed led, 
lithium ion, nickel metal hydride battery, or any other such dry cell battery 
capable of being recharged, or battery packs containing such batteries, 
it shall include, but not be limited to, a battery used as the principal 
electric power source for vehicle, automobile, boat, truck, tractor, golf 
cart or wheelchair, built in battery or for power back up in an electronic 
device.  
c. Disposable battery. – Or the alkaline type that contains high level of 
mercury and has zinc and manganese dioxide as electrodes. The 
alkaline electrolyte used is either potassium or sodium hydroxide. These 
batteries have a steady voltage offering better energy density and 
leakage resistance than carbon zinc batteries due to the manganese 
dioxide anode material, which is purer and denser, thereby reducing the 
space taken up by internal components only capable of single use.   
This shall include alkaline batteries in various sizes ranging from 
AAA to AA, C, D, 9v and AAAA.  
d. Other products of similar contents. – this shall include micro-alkaline 
cells, button cells that are similar to alkaline/disposable batteries; this 
shall also include Lithium-ion and lithium-polymer power banks that are 
similar to rechargeable batteries.   


 
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e. Government Hospitals and other Health Service Establishments. –   
any hospital or institution that provides diagnostic, therapeutic, 
rehabilitative, and/or other health care services, including but not limited 
to health centers, medical clinics, ambulatory surgical clinics, dental 
clinics and laboratories, dialysis centers and other health-related 
radiation facilities operated and maintained either partially or wholly by 
national, provincial, municipal or city government or other political 
subdivision, or by any department, division, board or other agency 
thereof.  
f. Export sales. – this Act shall adopt the definition provided for under 
Executive Order No. 226 also known as “The Omnibus Investments 
Code of 1987” as amended, to wit: 
 
“Article 23. "Export sales" shall mean the Philippine 
port F.O.B. value, determined from invoices, bills of 
lading, inward letters of credit, landing certificates, and 
other commercial documents, of exports products 
exported directly by a registered export producer or the 
net selling price of export product sold by a registered 
export producer to another export producer, or to an 
export trader that subsequently exports the same: 
Provided, That sales of export products to another 
producer or to an export trader shall only be deemed 
export sales when actually exported by the latter, as 
evidenced by landing certificates or similar commercial 
documents: Provided, further, That without actual 
exportation 
the 
following 
shall 
be 
considered 
constructively exported for purposes of this provision: 
(1) sales to bonded manufacturing warehouses of 
export-oriented manufacturers; (2) sales to export 
processing zones; (3) sales to registered export traders 
operating bonded trading warehouses supplying raw 
materials used in the manufacture of export products 
under guidelines to be set by the Board in consultation 
with the Bureau of Internal Revenue and the Bureau of 
Customs; (4) sales to foreign military bases, diplomatic 
missions and other agencies and/or instrumentalities 
granted tax immunities, of locally manufactured, 
assembled or repacked products whether paid for in 
foreign currency or not: Provided, further, That export 


 
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sales of registered export trader may include 
commission income: and Provided, finally, That 
exportation of goods on consignment shall not be 
deemed export sales until the export products 
consigned are in fact sold by the consignee. 
Sales of locally manufactured or assembled goods for 
household and personal use to Filipinos abroad and 
other non-residents of the Philippines as well as 
returning Overseas Filipinos under the Internal Export 
Program of the government and paid for in convertible 
foreign currency inwardly remitted through the 
Philippine banking systems shall also be considered 
export sales.” 
 
SECTION 4. Amount of Ecotax. – The amount of Ecotax on Rechargeable and 
Disposable Batteries shall be equal to one percent (1%) and three percent (3%) 
of the actual sale price, respectively. Other products with similar content shall 
be taxed on the same percentage accordingly.   
 
SECTION 5. Coverage and Fees. – The Ecotax on batteries shall be imposed on 
the manufacturers, distributors and importers that produce, distribute, and import 
rechargeable and disposable batteries and other products of similar content.  
 
SECTION 6. Exemptions. – The following sales of batteries shall be exempt from 
the coverage of this Act: 
 
a. Export sales; 
b. Purchases made during declared state calamities, disasters and other 
emergencies; and 
c. Purchases made by Government hospitals and other public health service 
establishments. 
 
SECTION 7. Disposition of Revenues Collected. – All revenues collected under 
this Act shall be earmarked solely and used exclusively for the following purposes: 


 
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a. Providing recycling programs and mechanisms for disposed batteries. 
b. Investing on protective measures for the proper disposal of batteries. 
c. Creating mechanisms encouraging the use of rechargeable batteries to 
reduce the need for disposal. 
d. Strengthening solid waste management programs. 
e. Environmental and health programs of the government.  
 
SECTION 8. Implementing Rules and Regulations. – The Department of 
Finance (DoF) in coordination with the National Solid Waste Management 
Commission (NSWMC) under the Department of Environment and Natural 
Resources (DENR), the Department of Trade and Industry (DTI), 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 section or part of this Act is 
unconstitutional or invalid, the other sections or provisions no other affected shall 
remain in full force and effect.  
 
SECTION 10. Repealing Clause. – All laws, decrees, executive orders, rules and 
regulations, issuances are any part thereof inconsistent with the provisions are 
hereby repealed, amended or 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.