FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) . 
SENATE 
S.B. 1054 
Introduced by Senator Villar 
EXPLANATORY NOTE 
Those who have less in life should have more in law. It is a fact that one of 
the main problems of the Philippines has to do with the hand-in-hand problem of 
poverty and hunger. 
The primary cause of malnutrition is the inequitable distribution of food. 
This is aggravated by the fact that the typical Filipino diet is grossly inadequate 
for energy and other nutrients as poor families try to make do with the scarce 
money they have to buy food. This situation is unlikely to improve as long as an 
estimated 28 million Filipinos are unable to buy food to meet basic nutritional 
requirements. 
Poverty in the Philippines is most acut~ and widespread in rural areas. 
Comparing poverty incidence nationwide as of 2007, the poverty incidence rate is 
highest in rural areas which is averages at 50.7% while urban areas average at 
21.5%. 
Poverty and malnutrition are already at alarming levels in this country, and 
the country's too-rapid population growth is magnifying the strain on limited 
budgetary resources. The rapidly growing population is jeopardizing the quality of 
basic social services, contributing to the ongoing decline in quality of basic 
education, and limiting access to health care (especially primary health care, 
reproductive health/family planning, immunization, and feeding programs). 
For this reason, there needs to be legislation that is geared toward 
returning to the Filipino people, especially those who have lesser in life, the 
enforced proportional contributions levied upon people in the forrn of taxes. 
Specifically, through the collections emanating frorn the Value-Added Tax 
System., because only then can the marginalized sectors of society feel that they 
are being granted more in law despite the fact that they have lesser in their lives. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
r ; 
) , 
) 
S. B. 1054 
Introduced by Senator Villar 
AN ACT 
TO ALLEVIATE THE CONDITIONS OF THE MARGINALIZED SECTORS OF 
SOCIETY BY PROVIDING A FOOD SUBSIDY PROGRAM. 
Be it enacted by the Senate and the House of Representatives in the Philippines 
in Congress assembled 
Section 1. Declaration of policies. - it is hereby declared the policy of 
the State: 
To promote a just and dynamic social order that will ensure the prosperity 
and independence of the nation and free the people from poverty through 
policies that provide adequate social services, promote full employment, a rising 
standard of living, and an improved quality of life for all. 
The Congress shall give highest priority to the enactment of measures that 
protect and enhance the right of all the people to human dignity, reduce social, 
economic, and political inequities, and remove ,cultural inequalities by equitably 
diffusing wealth and political power for the common good. 
In pursuance of these Constitutionally-proscribed policies, the welfare of 
the sectors of society that need the most assistance from the government in the 
form of subsidies shall be given consideration. 
Section 2. Food Subsidy Program. - It is hereby established a FOOD 
SUBSIDY PROGRAM in favor of individuals qualified as such under the 
parameters set forth by law. 
The food subsidy program shall grant to individuals a monthly allowance 
to be sourced directly from the collections made through the Value-Added Tax 
System. 
The following individuals are qualified to receive subsidies as hereunto set 
forth by law: 
. 
1. A head of the family earning less than One-hundred twenty thousand 
pesos (P120,OOO.OO) annually, exclusiVe of bonuses, overtime pay, 
holiday pay, night-shift differential; 
, 
A head of the family shall mean an individual who is married or is legally 
separated, or whose marriage has been .annulled and who has a child or 


children in his or her custody; or whose parents are living with him and are 
dependent on him chiefly for support, regardless of the age of the parents. 
2. An individual who is gainfully employed but who is earning less than one-
hundred thousand pesos (P100,OOO) annually, exclusive of bonuses, 
overtime pay, holiday pay, and night-shift differential. 
3. A married couple who earns not more th<',ln two-hundred thousand pesos 
(P200,OOO.OO) annually who has custody of not more than three (3) 
children. 
Provided, that in all the above enumerated instances, the total income of the 
household, both active and passive, shall not exceed the amounts as stated. 
Provided, further, that a family shall get an additional three hundred pesos 
(P300.00) for every child who logs at least eighty five percent (85%) class 
attendance in a month. Three children per family can avail of this additional 
amount. 
The food subsidy program shall be available'to all individuals or heads of the 
family all over the Philippines. 
The food subsidy program shall consist of monthly allowances amounting to 
seven hundred pesos (P700.00) per month for. an individual or a head of the 
family; Provided that, within three (3) years from the enactment of this legislation, 
the administrator of this program shall determine, through public hearing, and in 
consultation with representatives from the private sector, if the amount should be 
adjusted to meet the present needs of the families; Provided further, that such 
amount shall be exempt from taxes. 
Section 3. Entitlement to monthly allowances. -
The amount so 
determined earlier to be given to the individual or head of the family shall be 
given on a monthly basis at the first week of each month. 
Individuals qualified to receive the benefits of this law shall apply for 
inclusion to the same before the administrator of this law. The Administrator, 
convened as a Board, shall determine whether the individual is entitled to the 
benefits of this law through presentation by the applicant of the necessary 
income documents to prove that he comes within the qualifications of the law; 
Provided, that an individual who cannot produce income documents issued by 
the employer shall execute an affidavit attesting to the income being received by 
the individual both monthly and yearly. 
The individuals qualified as such shall be entitled to the benefits hereafter 
from the time of approval of the said application. 
If the individual granted the benefits of this program is later on discovered 
to be receiving income more than the amount so provided for by law, he shall be 
disqualified from availing of the benefits of this program, and other similar 
programs, in perpetuity; Provided, that the mere discovery of receiving income 
more than the provisions of the law shall be conclusive presumption of fraud and 
deceit employed by the individual. 
Section 4. How the benefits of this program are to be received. - The 
benefits received herein shall be given to the individual by means of a Food 
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Subsidy Program Card (FSPC) to be given upon determination that he is 
qualified to avail of these benefits. The FSPC shall be provided by the Land Bank 
of the Philippines. 
The amount so credited to the FSPC may not be withdrawn from its 
account. The said amount may be used for purposes of electronic payments to 
the duly-accredited retail establishments herein .. 
Section 5. Duly-accredited Retail Estllblishments. -
Throughout the 
Philippines, there shall be registered retail establishments that will provide the 
needs of the entitled individuals under the food subsidy program. 
Within three (3) years from the effectivity of this Act, there shall be 
established, at least one (1) duly-accredited retail establishment in every 
barangay in the Philippines; Provided, that after the effectivity of this law, the 
failure to establish duly-accredited establishments shall not be a hindrance to the 
enforcement of this Act. 
The duly-accredited retail establishments'shall provide the basic needs of 
the individuals entitled hereto, including but not limited to the following 
purchases: 
1. Agricultural produce; 
2. Dairy products; 
3. Processed food; 
4. Noodles (whether processed or not); 
5. Others 
Provided, that the products aforementioned shall only be sourced 
throughout the Philippines by the seller of the same, and if possible, within the 
same barangay, province, city or municipality to provide economic and livelihood 
opportunities within the community. 
The duly-accredited retail establishments may be put up only by Resident 
Citizens of the Philippines living within the said barangay, province, city or 
municipality where the same shall be established. 
The duly-accredited retail establishments shall not be considered a 
Corporation for purposes of taxation under the National Internal Revenue Code 
for the first three (3) years of its operation. 
Section 6. Administrator of the Food Subsidy Program. - The National 
Food Authority shall be the administrator of the food subsidy program. 
In convening a Board for the purposes of determining the entitlement of 
individuals herein, the following shall compose the Board: 
1) A representative from the National Food Authority in the region where 
the Board is established; 
2) A representative from the marginalized sector of society; 
3) A representative from the Bureau of Internal Revenue; 
The Board shall be convened for every region in the Philippines, and shall 
convene at least once a month, for the purpose of determining the individuals 
entitled to the benefits of this Act. 
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The Board shall determine, within three (~) years from the approval of this 
Act, and every three (3) years thereafter, in. consultation with the National 
Economic Development Authority, if the subsidies to be given should be 
increased, but at no time shall it be decreased. 
Section 7. Repealing Clause. - All laws, orders, decrees, rules and 
regulations, and other parts thereof inconsistent with the provisions of this Act 
are hereby repealed, amended or modified accordingly. 
Section 8. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapeFs of general circulation. 
Approved, 
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