Republic of the Philippines
HOUSE OF REPRESENTATIVES. /s

Quezon City, Metro Manila ao oe ED Se
013

SIXTEENTH CONGRESS, 18
First Regular Session { Qs

HOUSE BILL NO. 3370.

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

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 (0 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.

= In an 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,

pproval of this bill is earnestly sought.

a
(Wt tan
ANGELINA “HELEN” D.L. TAN, M.D.
4th District, Quezon


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

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No, __ 3370

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 earried on ther

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