Republic of the Philippines} .
HOUSE OF REPRESENTATIVE: DATE:
Quezon City Tune ro
|
SEVENTEENTH CONGRESS BV _
First Regular Session

| RECEIVED

RATION UNIT
\DEX SERVICE

nouseBiLNo. 1742 | susaxo

HOUSE OF REPRESENTATIVES:

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT PROVIDING PROVISIONAL RELIEF TO CERTAIN VICTIMS OF
TYPHOONS, EARTHQUAKES, VOLCANIC ERUPTIONS OR OTHER
SIMILAR DISASTERS BY GRANTING SPECIAL DEDUCTIONS FROM
INCOME AND REAL PROPERTY TAXES IN THEIR FAVOR

EXPLANATORY NOTE

The Philippines faces a long, grim and painful path to recovery in the wake of
super typhoon “Yolanda” whose international name is “Haiyan” in what could be the
worst disaster to hit the country. The CNN described the typhoon, which came on the
heels of the 7.2 magnitude Bohol earthquake, as ‘worse than hell’. Thousands are feared
to have died and some people have reportedly lost their minds due to hunger and
desolation amid looting, anarchy and stench of decomposing bodies.

The country is prone to disasters and hazards due to its geography and geology. In
its Executive Summary, “The National Disaster Risk Reduction and Management Plan”,
provides the following facts which are instructive regarding the occurrence of disasters
and hazards in the country:

- Tropical cyclones and its sequential effects of rain and windstorms, as well as
floods are the most prevalent types of hydro-meteorological hazards in the country.
Between 1997 and 2007, eighty- four (84) tropical cyclones entered the Philippine
Area of Responsibility (PAR). These typhoons resulted to a total of 13,155 in human
casualty and more than 51 million families have been affected.

- Environmental factors such as denuded forests aggravate flood risks. Even
now, the effects of loose soil and reduced forest cover from past forestry activities are
felt in frequent landslides and floods. Recent events show that the annual monsoon
season in the country has brought severe flooding in most areas.

- In 2011, most of the disasters that claimed the lives of people and affected
properties and livelihoods of the most vulnerable were brought about by increased
rainfall which caused massive flash flooding in areas which don’t normally
experience such.

- ... the Philippines is situated along a highly seismic area lying along the
Pacific Ring of Fire and is highly-prone to earthquakes. According to the Philippine
Institute on Volcanology and Seismology (PHIVLOCS), the country experiences an
average of five (5) earthquakes a day. Earthquake disasters are not as frequent as the



typhoons and flooding that take place in the Philippines. Nevertheless, the impact
generated on affected communities is usually massive and devastating.

- The Philippines is ... prone to volcanic eruptions being situated along the
Pacific Ring of Fire where two major tectonic plates (Philippine Sea and Eurasian)
meet. This explains the occurrence of earthquakes and tsunamis and the existence of
around 300 volcanoes of which 22 are active.

- Inan analysis of natural disaster hotspots by the Hazard Management Unit of
the World Bank in 2005, the Philippines is among the countries where large
percentages of population reside in disaster prone areas. In the 2011 World Risk
Report published by United Nations University and the Institute of Environment
and Human Security, looking into the four components of risk (exposure,
susceptibility, coping and adapt capacities), the Philippines is the third most disaster
risk country worldwide.

In view of the foregoing, this bill seeks to grant victims of disasters a reasonable

deduction from their tax liabilities within a specified period as a means to alleviate the
adverse economic conditions affecting them and to accelerate the pace of their

rehabilitation.

While taxes are the lifeblood of the government and while it depends upon

taxation to serve the people for whose benefit taxes are collected, the State, for
humanitarian reasons and as parens patriae, must safeguard and promote the public
welfare through reasonable legislative measures that will help alleviate serious economic

dislocations on the part of disaster victims.

In view thereof, approval of this bill is earnestly sought.

ANGELINA el lp, TAN, M.D.

4th District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__1742

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT PROVIDING PROVISIONAL RELIEF TO CERTAIN VICTIMS OF
TYPHOONS, EARTHQUAKES, VOLCANIC ERUPTIONS OR OTHER
SIMILAR DISASTERS BY GRANTING SPECIAL DEDUCTIONS FROM
INCOME AND REAL PROPERTY TAXES IN THEIR FAVOR

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

SECTION 1. Notwithstanding any provision of law to the contrary, any person,
natural or juridical, whose immovable property was lost, totally or partially destroyed by
a typhoon, earthquake, volcanic eruption or similar natural calamities shall be allowed
to deduct the total amount of the loss or destruction from his or its income and real
property tax liabilities up to a period of three (3) years from the time of the loss or
destruction; Provided, That the immovable property mentioned herein shall refer only
to residential lands and buildings, commercial and industrial buildings, agricultural
lands together with the plants and growing fruit trees thereon, and permanently
installed machinery intended by the owner of the building or structure for an industry or
business which may be carried on therein.

SEC. 2. The Commissioner of the Bureau of Internal Revenue shall, within thirty
(30) days from the effectivity of this Act, promulgate rules and regulations necessary to
implement the provisions hereof.

SEC. 3. This Act shall take effect fifteen (15) days after its complete publication in
the Official Gazette or in at least two (2) national newspapers of general circulation
whichever comes earlier.

Approved.