Republic of the Philippines
HOUSE OF REPRESENTATIVES,”
Quezon City

OME:

4

SIXTEENTH CONGRESS
First Regular Session QS pee 8

HOUSE BILL No. 3685

Introduced by CHRISTOPHER S. CO and RODEL M. BATOCABE

EXPLANATORY NOTE

This bill seeks to regulate the use of firecrackers by imposing excise taxes
on the sale thereof.

Notwithstanding the continuous and rigorous efforts of the Department of
Health (DOH), Philippines National Police (PNP), and the media to wam the public
on the dangers of fireworks, and to implement Republic Act No, 7183 or the Act
Regulating the Sale, Manufacture, Distribution, and Use of Firecrackers and other
Polytechnic Devices, the number of deaths and injuries caused by firecrackers
increases every year.

In December 2013, the DOH reported 914 firework injuries while in 2012,
there were 892 firework injuries. While the injuries were reportedly of less serious
in nature than that of previous years, the number is higher. The DOH, the PNP,
and other concerned government agencies, have suggested other ways of
regulating the sale and use of fireworks and other similar devices.

The injuries, deaths, and destruction of property must be prevented by
regulating the sale and use of firecrackers and fireworks. By exercising the power
Of taxation on the sale of firecrackers, Congress will be able to minimize, if not put
an end, to the use of dangerous firecrackers.

The legislature has the inherent power to select the subjects of taxation and
to grant exemptions. Taxation may also be made the implement of the state's
police power (Lutz v. Araneta, G.R. No. L-7859, 1955; Planters Products, Inc., v
Fertiphil Corporation, G.R. No. 166006, 2008). Police power is the capacity of the
government to regulate behavior and enforce order within their territory for the
betterment of the general welfare, morals, health and safety.

view of the above circumstances, the swift passagé bill is earnestly
sought

Rep. CHRISKOPHER S. CO Rep|RODEL M. BATOCABE


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 3685

Introduced by CHRISTOPHER S. CO and RODEL M. BATOCABE

AN ACT
PROVIDING FOR AN EXCISE TAX ON THE SALE OF FIRECRACKERS AND
FIREWORKS, AMENDING THEREFOR REPUBLIC ACT NO. 8242,
OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE OF
1997, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of th
Philippines in Congress assembled:
Section 1. Chapter VI — Excise Tax on Miscellaneous Articles, under Title VI of the
National Internal Revenue Code of 1997 is hereby amended to read as follows:
“SECTION 150-A. FIREWORKS AND FIRECRACKERS. — THERE SHALL
BE LEVIED, ASSESSED AND COLLECTED, AGAINST PURCHASERS, A
TAX EQUIVALENT TO TWENTY-PERCENT (20%) BASED ON THE
MANUFACTURER'S SELLING PRICE, NET OF EXCISE TAX AND VALUE
ADDED TAX OF FIREWORKS AND FIRECRACKERS.
(A) DEFINITION OF TERMS
(1) FIREWORKS WHICH SHALL MEAN ANY COMPOSITION
OR DEVICE THAT IS DESIGNED TO PRODUCE A VISIBLE
EFFECT BY COMBUSTION, EXPLOSION, DEFLAGRATION,
OR DETONATION, BY COMBINING OR USING ANY
COMBUSTIBLE OR EXPLOSIVE SUBSTANCE, OR ANY
SUBSTANCE WHICH WHEN COMBINED WITH OTHER
SUBSTANCE OR ARTICLE, PRODUCES A VISIBLE
EFFECT; AND
(2) “FIRECRACKERS” WHICH SHALL MEAN ANY
COMPOSITION OR DEVICE THAT IS DESIGNED TO
PRODUCE A AUDIBLE EFFECT BY COMBUSTION,
EXPLOSION, DEFLAGRATION, OR DETONATION, BY
COMBINING OR USING ANY COMBUSTIBLE OR
EXPLOSIVE SUBSTANCE, OR ANY SUBSTANCE WHICH


WHEN COMBINED WITH OTHER SUBSTANCE OR
ARTICLE, PRODUCES AN AUDIBLE EFFECT.
(B) EXCEPTED DEVICES. THIS SECTION SHALL NOT APPLY TO
DEVICES USED FOR THE FOLLOWING
(1) MARINE, RAILROAD, OR AVIATION PURPOSES;
(2) RADIO, TELEVISION, FILM, THEATER PRODUCTIONS,
ATHLETIC EVENTS;
(3) INDUSTRIAL PURPOSES; AND
(4) GOVERNMENT, MILITARY PURPOSES.
(C) THE EXCUSE TAX IMPOSED BY THIS SECTION SHALL BE
COLLECTED BY THE FIREWORKS OR FIRECRACKERS DEALER,
RETAILER, OR SELLER, FROM THE FIREWORKS OR
FIRECRACKERS CONSUMER OR PURCHASER
(D) THE FIREWORKS OR FIRECRACKERS DEALER, RETAILER,
OR SELLER SHALL BE RESPONSIBLE FOR THE COLLECTION
OF THE TAX AND THE PAYMENT OF THE TAX TO THE
COMMISSIONER
(E) THE TAX ADVANCED AND PAID BY THE DEALER, RETAILER,
OR SELLER AS PROVIDED IN THIS SECTION SHALL BE ADDED
TO AND COLLECTED AS PART OF THE SALES PRICE OF THE
CONSUMER FIREWORKS SOLD OR DISTRIBUTED. THE
AMOUNT OF THE TAX SHALL BE STATED SEPARATELY FROM
THE PRICE OF THE FIREWORKS OR FIRECRACKERS. "
Section 2. Implementing Rules and Regulations. The Secretary of Finance
shall, upon the recommendation of the Commissioner of Internal Revenue,
promulgate the necessary rules and regulations to implement the provisions of this
Act.
Section 3. Repealing Clause. All laws, decrees, ordinances, rules, and
regulations, executive or administrative orders, and such other presidential
issuances which are inconsistent with any of the provisions of this Act are hereby
repealed, amended or otherwise modified accordingly.
Section 4. Effecti
publication in the Official Gazette or in at least two (2) newspapers of general

ity. This Act shall take effect fifteen (15) days after its

circulation, whichever comes earlier.

Approved,