Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

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HOUSE BILL No.

Introduced by Reps. NERI J. COLMENARES CARLOS ISAGANT T. ZARATE,
LUZVIMINDA C. ILAGAN, EMERENCIANA A. DE JESUS, ANTONIO L. TINIO,
FERNANDO BICAP, and TERRY RIDON

AN ACT
CLASSIFYING SERVICES RENDERED BY TOLLWAY OPERATORS AS VALUE-
ADDED TAX EXEMPT TRANSACTIONS, AMENDING FOR THE PURPOSE
SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED BY REPUBLIC ACY NO, 9337, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This bill seeks to amend the National Internal Revenue Code of 1997, as amended by Republic Act No.
77, by exempting tollway services and the fees tollway operators collect from the value-added tax

1).

According to the Bureau of Internal Revenue (BIR), the government’s move to collect VAT on tollway
ions will earn P2.3 to P3 billion annually to ostensibly help fund the Aquino government's social
services and infrastructure projects.

But the VAT on tollway operations have jacked up all the tol fee rates wherein Class 1 vehicles travelling
on the Nozth Luzon Expressway (NLEX) from Balintawak to Sta. Ines pay a total of P218 from the
previous rate of P195, while the highest toll for Class 1 is P272 from Tipo to Tarlac from the previous
243.

An ordinary car taking the South Luzon Expressway (SLEX) would pays P96 from
‘Alabang to Calamba from the previous P86 while the Skyway charges P165 for the elevated potion from
Makati to Alabang from the previous P147. Rates for tucks and buses are bigger and have become even
‘more expensive with the imposition of the VAT on tollway operations.

Imposing the VAT' on tollway operations is definitely another burden on the already over-taxed shoulders
of our people, especially for those whose incomes are barely enough to cover their basic needs,

In these times of unbridled hikes in the prices of oil, food, other commodities and services, itis the duty
of Congress to work for economic relief to Filipino citizens. The clear-cut removal of VAT on tollway
services in the current internal revenue law is the most logical option for Congress to act on,

Furthermore, in light of the 2011 Supreme Court decision favoring the imposition of the VAI on tollway
services, the burden is on Congress to protect the people by removing tollway sezvices from the VAT as
direct form of economic relief for the Filipino people. Whatever government revenue losses incurred will
be offset by the increased purchasing power of all Filipino citizens that will prove better in the long run in
making the economy a vibrant and equitable one.

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


Approved,

INARES

Lays 4

Rep. LUZVIMINDA C, ILAGAN, Rep. CARLOS ae T.ZARATE
Gabriela Women’s Parly Bayan Muna Party-st
Agen eee oA
Rep. EMMI A. DY JESUS ‘ep. ANTONIO L. TINIO
Gabriela Women’s Party ACT Teachers Party-list

Rep. FER Riko mbar! fep. TERRY RIDON.
“Anakpawis Party-list Kabataan Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No.

Introduced by Reps. NERI J. COLMENARES CARLOS ISAGANI T. ZARATE,
LUZVIMINDA C. ILAGAN, EMERENCIANA A. DE JESUS, ANTONIO L. TINIO,
FERNANDO HICAP, and TERRY RIDON

AN ACT
CLASSIFYING SERVICES RENDERED BY TOLLWAY OPERATORS AS VALUE-
ADDED TAX EXEMPT TRANSACTIONS, AMENDING FOR THE PURPOSE
SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED BY REPUBLIC ACT NO. 9337, AND FOR OTHER PURPOSES

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

SECTION 1, Section 109 (1) of the National Internal Revenue Code, as amended by
Republic Act No, 9337, 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) xxx
$B) xxx

“xxx,

“U) xx
“(V) xxx

“(W) SERVICES RENDERED BY TOLLWAY OPERATORS.
SECTION 2. Repealing Clause. — All other laws, acts, decrees, executive orders, issuances,
and rules and regulations or patts thereof which are contrary to and inconsistent with any
provisions of this Act are hereby repealed, amended, or modified accordingly.

SECTION 3. Separability Clause. — If any provision of this Act is subsequently declared
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and

effect.

SECTION 4. Effectivity Clause. This Act shall take effect immediately after its publication
cither in the Official Gazette or in a newspaper of general circulation in the Philippines,

Approved,