Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EP ta

at

a

SEVENTEENTH CONGRES'
First Regular Session

No. 8720

House

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

EXPLANATORY NOTE,

Carbonated drinks, most commonly called by Filipinos as “softdrinks”, powdered and ready
to drink juices are part and parcel of an average Filipino meal, Filipinos have grown fond of
sofidrinks that the demand for them has ted to more and more carbonated drinks and juice
products entering the market competition,

is not a secret that carbonated drinks, apart from the refresment they bring, cause a lot of
health risks. Their high sugar content and the colouring chemicals they contain have a direct
correlation to the common illnesses affecting people. Among the health risks associated with
carbonated drinks are prostate and pancreatice cancer. cardiovascular diseases, diabetes, liver
damage, increased violent tendencies, obesity, and Alzheimer’s disease, These health risks
have forced other countries to adopt policies to lessen public consumption of carbonated
drinks and juices

The 1987 Philippine Constitution enjoins the state 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 carbonated drinks and juices 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.

SCOTT DAVIES S, LANETE, M.D)
epresentative
Third District, Province of Masbate


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 3720

Introduced by HONORABLE SCOTT DAVIES 8. LANETE, M.D.

AN ACT AMENDING CERTA\
THE “NATIONAL INTERNAL REVE!
OF 1997” AND FOR OTHER PURPOSES

PROVISIONS OF REPUBLIC ACT NO. 8424,
E CODE

Be it enacted by the §
assembled.

nate and House of Representatives of the Philippines in Congress

Sec. 1, 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 resourees, 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
its 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
locally-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 carbonated drinks, powdered juices, or ready-to-drink juices, a tax of
One peso (P1,00) shall be levied on every milliliter or milligram as the case
may be

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

Sec. 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 Gazerte

or in at least two (2) newspapers of general circulation,

Approved