Republic of the Philippines _,,,-2 0 UN 2016

HOUSE OF REPRESENTATIVES 54a 4
Quezon City, Metro Manila ay. /

SEVENTEENTH CONGRESS RECISTRATION UNIT
Ff if ILLS AND INDEX SERVICE
First Regular Session

86
HOUSE BILL NO.

Introduced by: HONORABLE SETH FREDERICK P. JALOSJOS

AN ACT AMENDING SECTION 150 OF REPUBLIC ACT 8424, OTHERWISE KNOWN
AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

EXPLANATORY NOTE

This is a re-filed bill under HB 6150 - 16" Congress, Third Regular Session. The
Committee on Ways and Means has deliberated this bill represented by the resource persons
from the Department of Finance (DOF), Bureau of internal Revenue(BIR), National Tax
Research Center (NTRC) and the Cosmetics Industry (CIP).

The consumption of beauty, hygiene and healthy products is rising in the Philippines
even among the lower-income groups, according to a consumer research released in 2013, and
the fragrance industry has benefited from the changing lifestyle of Filipinos.

More that this consumer trend, the fragrance industry has contributed largely to the
Philippine economy.

With the ASEAN integration by 2015, where a single market and production base is
envisioned leading to a free flow of goods, services, investment capital and skilled labour in the
region, the country must remain or even improve its competitiveness in regional and global
market.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 86

Introduced by: HONORABLE SETH FREDERICK P. JALOSJOS

AN ACT AMENDING SECTION 150 OF REPUBLIC ACT 8424, OTHERWISE KNOWN
AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

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

SECTION 1. Section 150 of the National Internal Revenue Code, as amended, is hereby further
amended to read as follows:

“Sec. 150. Non-essential Goods.-There shall be levied, assessed and collected a tax equivalent
to twenty-percent (20%) based on the wholesale price or the value of importation used by
the Bureau of Customs in determining tariff and customs duties, net of excise tax and value-
added tax, of the following goods:

(a) Xxx

(b) Perfumes and Toilet Waters WITH PERFUME/ESSENTIAL OIL CONTENT OF MORE
‘THAN THREE PERCENT (3%) BY AVERAGE WEIGHT.

SECTION 2. Implementing Rules and Regulations.- The Commissioner of the Bureau of Internal
Revenue (BIR) shall, within thirty (30%) days from the effectivity of this Act, issued the
necessary rules and regulations for the implementation of this Act.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 86

Introduced by: HONORABLE SETH FREDERICK P. JALOSJOS

AN ACT AMENDING SECTION 150 OF REPUBLIC ACT 8424, OTHERWISE KNOWN
AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED

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

SECTION 1. Section 150 of the National Internal Revenue Code, as amended, is hereby further
amended to read as follows:

“Sec. 150. Non-essential Goods.-There shall be levied, assessed and collected a tax equivalent
to twenty-percent (20%) based on the wholesale price or the value of importation used by
the Bureau of Customs in determining tariff and customs duties, net of excise tax and value-
added tax, of the following goods:

(a) Xxx
(b) Perfumes and Toilet Waters WITH PERFUME/ESSENTIAL OIL CONTENT OF MORE
THAN THREE PERCENT (3%) BY AVERAGE WEIGHT.

SECTION 2. Implementing Rules and Regulations.- The Commissioner of the Bureau of internal
Revenue (BIR) shall, within thirty (30%) days from the effectivity of this Act, issued the
Necessary rules and regulations for the implementation of this Act.


SECTION 3. Separability clause.- If any provision of this Act is subsequently declared invalid or
unconstitutional, other provisions hereof which are not affected thereby shall remain in full
force and effect.

SECTION 4, Repealing Clause.- All laws, decrees, orders, rules and regulations, and other
issuances, or parts thereof, inconsistent with the provisions of this Act are hereby, repealed or

modified accordingly.

SECTION 5. Effectivity Clause.- This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved.