REPRES,

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

TIME 3:20pm

EIGHTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 10746

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
LOWERING THE COST OF ELECTRICITY AND PETROLEUM PRODUCTS

This proposed measure seeks to reduce the excise tax on petroleum products and coal
by fifty percent (50%), suspend the imposition of applicable duties on their importation,
and exempt the system loss charge in the sale of electricity from the value-added tax
(VAT), for a period of three (3) years.

It seeks to mitigate the effects of the imposition of VAT and the increased excise taxes
‘on petroleum products and coal that are too much of a burden on the consumers and
businesses during this time of the COVID-19 pandemic.

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

} Ls :
LUIS RAY! ID “1 F. VILLAFUERTE, JR.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Third Regular Session

HOUSE BILL No.L0746

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

LOWERING THE COST OF ELECTRICITY AND PETROLEUM PRODUCTS:

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Sec. 1. Section 109 of the National Internal Revenue Code of 1997, as amended, is
hereby further amended to read as follows:

"SEC. 109. Exempt Transactions. —

"(1) Subject to the provisions of Subsection (2) hereof, the following transactions
shall be exempt from the value-added tax:

"(A) xx,

"Xxx;

(AA) xxx;

"(BB) xxx;

"(CC) SYSTEM LOSS CHARGE IN THE SALE OF ELECTRICITY FOR A
PERIOD OF THREE (3) YEARS FROM THE DATE OF EFFECTIVITY OF THIS
ACT; AND

"[CG] (DD) Sale or lease of goods or properties or the performance of services
other than the transactions mentioned in the preceding paragraphs, the gross
annual sales and/or receipts do not exceed the amount of Three million pesos
(P3,000,000)."

Sec. 2. Section 148 of the National Internal Revenue Code of 1997, as amended, is
hereby further amended to read as follows:

"SEC. 148. Manufactured Oils and Other Fuels. — There shall be collected on
refined and manufactured mineral oils and motor fuels, the following excise taxes
which shall attach to the goods hereunder enumerated as soon as they are in
existence as such:

"XK


"[Provided, Tha an-annual-review ofthe
tion-of the excise tax-on-fuel-and-shall-_based_on-projections-provided
" dations-of the_Development budget _coordination_-Committee,
seconciled-from-the-conditi provided-above, mend the implementati
. the excise tax-on fuel: Provided, further-That th endation
ase-in-excise-tax_shall_not-result-i -of-the-excise-tax-being
imposed-at-the-time of the suspension]

“PROVIDED, THAT BEGINNING FROM THE DATE OF EFFECTIVITY OF THIS
ACT, THE EXCISE TAXES IMPOSED ON PETROLEUM PRODUCTS UNDER
THIS SECTION SHALL BE REDUCED BY FIFTY PERCENT (50%) AND THE
IMPOSITION OF APPLICABLE DUTIES THEREOF SHALL BE SUSPENDED,
FOR A PERIOD OF THREE (3) YEARS."

Sec. 3. Section 151 of the National Internal Revenue Code of 1997, as 27 amended, is
hereby further amended to read as follows:

"SEC. 151. Mineral Products. —

"(A) Rates of Tax. — There shall be levied, assessed and collected on minerals,
mineral products and quarry resources, excise tax as follows:

"(1) On domestic or imported coal and coke, notwithstanding any incentives
granted in any law or special law:

"Effective January 1, 2018, Fifty pesos (P50.00) per metric ton;

“Effective January 1, 2019, One hundred pesos (P100.00) per metric ton; and
“Effective January 1, 2020, One hundred fifty pesos (P150.00) per metric ton.
"PROVIDED, THAT BEGINNING FROM THE DATE OF EFFECTIVITY OF THIS
ACT, THE EXCISE TAX IMPOSED ON COAL AND COKE UNDER THIS
SECTION SHALL BE REDUCED BY FIFTY PERCENT (50%), AND THE
IMPOSITION OF APPLICABLE DUTIES THEREOF SHALL BE SUSPENDED,
FOR A PERIOD OF THREE (3) YEARS.”

"Ox"

Sec. 4. Implementing Rules and Regulations (IRR). — Within thirty (30) days from the
effectivity of this Act, the Secretary of Energy and the Secretary of Finance, upon the
recommendation of the Commissioner of Internal Revenue, shall promulgate the
necessary rules and regulations for its effective implementation.

Sec. 5. Separability Clause. — If any provision or part hereof is declared unconstitutional,
the remainder of this Act or any provision not affected shall remain in full force and effect.


Sec. 6. Repealing Clause. - All laws, acts, decrees, executive orders, issuances, and
rules and regulations or parts thereof which are contrary to and inconsistent with this Act
are hereby repealed, amended or modified accordingly.

Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days after its complete
Publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,