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REPUBLIC OF THE PHILIPPINES [? RECEIVED <\
HOUSE OF REPRESENTATIVES (e} a
Quezon City IE DATE 27 AUG 0
TIME "35
‘TWENTIETH CONGRESS

First Regular Session

No. 4104

Introduced by Pangasinan Fifth District Representative
HON. RAMON N. GUICO JR.

House

EXPLANATORY NOTE

Often we tout that education is the paramount solution to our country’s woes and yet, even
with the very same annually accorded the lion’s share of the national budget, our education system
remains far from exceptional. To illustrate, the Department of Education (DepEd) has reported that
for Academic Year 2024-2025, there are over 28 million enrollees from kinder to senior high
school, with a sizeable number of public schools unable to cope with such spikes in student
population. Public school administrators are therefore forced to put students in cramped classrooms,
conduct two separate classes in a single room, and enforce irregular shifts to accommodate all year
levels in a school day.

Consequently, such severe learning conditions negatively impact the academic development
of many Filipino children, which in turn damages the quality of our human capital. Ideally, the
classroom-student ratio should be at 1:45, but present realities indicate otherwise. There’s also the
problem of decrepit school facilities such as libraries, workshops, and even comfort rooms that
exacerbates the already uncomfortable conditions many Filipino students and teachers suffer from.
Clearly, the budget program is insufficient to meet our annual educational funding requirements.

‘As such, to address these deficiencies, 20% of all VAT proceeds should be automatically
allocated for the following:

a. Construction of buildings, classrooms, toilets, and other structures for pre-school
education;

b. Additional funding for the Government Assistance to Students and Teachers in
Private Education (GASTPE) Program for pre-school education;

c. Acquisition and improvement of sites for elementary education;

d. Acquisition and improvement of sites for secondary education;

¢. Acquisition and improvement of sites for state and local universities and
colleges;

f. Scholarship grants for technical education and skills development; and

2. Scholarship grants for qualified indigent students enrolled in science and
engineering courses.

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

mon N. Guico Jr.

EPRES
Ee POSEN

EGG


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 4104

Introduced by Pangasinan Fifth District Representative
HON. RAMON N. GUICO JR.

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 eighty-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.—TWENTY PERCENT
(20%) 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 (10%) 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 (20%) 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,
LIBRARI WORKSHOPS, TOILETS AND OTHER STRUCTURES, TO BE
ADMINISTERED BY THE DEPARTMENT OF EDUCATION;

5) TEN PERCENT (10%) SHALL BE ALLOCATED FOR STATE AND LOCAL
UNIVERSITIES AND COLLEGES FOR THE ACQUISITION AND IMPORVEMENT OF


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SITES; THE CONSTRUCTION, REPLACEMENT, AND REPAIR OF BUILDINGS,
CLASSROOMS, LIBRARIES, | WORKSHOPS, TOILETS AND OTHER
STRUCTURES, TO BE ADMINISTERED BY THE COMMISSION ON HIGHER
EDUCATION;

6) 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

7) 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,