EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B. No. 4546

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION TO
LEGAZPI CITY, ALBAY, PROVIDING FUNDS FROM THE ANNUAL VALUE-
ADDED TAX COLLECTIONS, AMENDING FOR THE PURPOSE THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED

EXPLANATORY NOTE

The Philippine government recognizes the need to interconnect our regions through good
transport and communication networks. It gives higher priority to asset preservation or
maintenance and rehabilitation of the existing transport infrastructure network rather than new
construction or development particularly on the quality of the existing railroad tracks and
services. This will open up new economic opportunities, reduce transportation and transaction

costs of business and increase access to social services particularly the marginalized sectors.'

This bill allocates five percent (5%) of annual value-added tax (VAT) collections to
reconstruct and rehabilitate the existing 479-kilometer stretch of Philippine National Railways
(PNR) lines from San Fernando, La Union to Legazpi City, Albay.

The interconnection of regions in Luzon through a railway network from San Fernando,
La Union to Legazpi City, Albay will decentralize progress and bring development to the
countryside. At the same time, this bill will provide productive employment opportunities
through sustainable infrastructure projects. ‘The reconstruction and rehabilitation of this railway
network will provide thousands of jobs to Filipinos who can provide hard labor to build, restore
and rehabilitate roads, bridges and other structures.

Development Plan 2011-2016, Chapter 5: Accelerating Infrastructure Development”
/20


‘Also, this project is a climate-change adaptation measure. It addresses certain
environmental concerns, particularly, the mitigation of greenhouse effect which contributes
significantly to global warming. Train, in all studies, has a lower greenhouse gas emission rate
than any motorized modes of transportation which rely heavily on fossil fuel for their operation.

This bill further responds to a need for sustainable planning of infrastructure
investments. Moving passengers and goods from La Union to Bicol will accelerate trade and

encourage migration in those areas. It will also meet one of our toughest development challenges
and that is the decentralization of progress by decongesting our crowded cities and urban areas

to provide our people in the frontiers better access to social services.

In this light, the immediate passage of this bill is earnestly sou:

VILMA SANTOS-RECTO.



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EIGHTEENTH CONGRESS OF THE +)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

H.B.No,_4546

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
TO RECONSTRUCT AND REHABILITATE THE EXISTING 479-KILOMETER
PHILIPPINE NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION TO
LEGAZPI CITY, ALBAY, PROVIDING FUNDS 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 eighty-seven (287), 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.-A.) TWO AND A HALF PERCENT (2.5%) OF THE VALUE-
ADDED TAX COLLECTED —_ UNDER TITLE IV OF THIS ACT, AS
AMENDED, SHALL BE ALLOCATED TO RECONSTRUCT — AND
REHABILITATE THE EXISTING 479-KILOMETER PHILIPPINE
NATIONAL RAILWAYS LINE FROM SAN FERNANDO, LA UNION TO.
LEGAZPI CITY, ALBAY;
B.) TWO AND A HALF PERCENT (2.5%) OF THE VALUE-ADDED TAX
COLLECTED UNDER TITLE IV OF THIS ACT, AS AMENDED, SHALL
BE ALLOCATED FOR THE ACQUISITION OF ROAD RIGHT OF WAY
NEEDED TO IMPLEMENT THE PROJECT MENTIONED IN THE
PRECEDING PARAGRAPH.
THE ALLOCATION SHALL BE ADMINISTERED BY THE
DEPARTMENT OF TRANSPORTATION (DOTr), THROUGH ITS
ATTACHED AGENCY PHILIPPINE NATIONAL RAILWAYS (PNR).”


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Sec. 2. The succeeding Sections of the National Internal Revenue Code, as amended are
hereby renumbered accordingly.

Sec. 3. Implementing Rules and Regulations. — The Department of Budget and
Management, in coordination with the Department of Finance, Bureau of Internal Revenue,
DOTr and PNR shall, within thirty (30) days from the effectivity of this Act, promulgate the
rules and regulations to effectively implement the provisions of this Act.

Sec. 4. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby
repealed or modified accordingly.

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

Approved,