Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.£3390

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

Under Article II, Section 16 of the 1987 Constitution of the Republic of the
Philippines, the State is mandated “to protect and advance the right of the
people to a balanced and healthful ecology in accord with the rhythm and
harmony of nature.” Concretely, the constitutional provision directs the
government to craft public policies that promote sustainable and ecologically
advantageous programs.

Several studies world-wide recognize that batteries create a particular
challenge to the management of solid and other wastes. Batteries usually
contain heavy metals, lead acid accumulators, and sulphuric acid which have
the potential to cause extensive harm if disposed through either landfills or
through incineration.

Alkaline or disposable batteries also come in small dimensions that require
more delicate and costlier collection processes from municipal waste streams

With the use of mobile electronic equipment containing built-in batteries unlikely
to decline in the foreseeable future, the continued production, circulation, and
constant upgrading of these equipment and their component battery parts also
demand more technical, advanced, and expensive public mechanisms for the
collection and processing of electronic waste.

To finance these interventions, jurisdictions abroad have sought recourse to the
State's power of taxation. In Belgium for example, a general tax is imposed on
all kinds of batteries sold without any distinction. Meanwhile, in Italy batteries
are taxed according to its mercury, manganese and lead-acid content.

In recent years, ecological taxation is a common instrument used by different
State authorities in order to create economic incentives arising from
environmental-friendly activities. This is usually levied on activities or products
that are known to be harmful to the environment/ ecology. Underlying this
approach is the idea that the change in consumer behavior would feed back
into the economic system and eventually change the producer behavior. The



overall objective is to reduce pollution and encourage use of alternatives. This
kind of policy complements the need for regulatory (command and control)
campaigns while enforcing efforts from the producers and consumers to adapt
to their behavior.

This Act shall impose an Ecotax on Rechargeable Batteries which shall be
equal to one percent (1%) and Disposable Batteries and Other Products
with similar contents which shall be equal to three percent (3%) of the
actual sale price as defined herein. The Ecotax shall cover battery
manufacturers, producers and importers.

Itis in the interest of the Filipino people to live in a country where advancements
in and inclusive access to technology do not pose significant threats to the
ecological system.

In view of the foregoing, the immediate approval of this bill is earnestly sought.

LUIS RAY! ID “| Y” F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Queson City

EIGHTEENTH CONGRESS
First Regular Session

House BILL No. 6390

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT IMPOSING ECOTAX ON BATTERIES.

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

SECTION 1. Short Title. - This act shall be known as “BATTERIES ECOTAX
ACT’.

‘SECTION 2. Declaration of Policy ~ It is a declared policy that the State shall
protect and advance the right of the people to a balanced and healthful ecology
in accord with the rhythm and harmony of nature

Thereby, the State is mandated to create policies that shall reduce
environmental pollution, decrease toxicity of waste materials by encouraging
recycling and minimizing the disposal of used batteries and other products with
similar content that are sold or stored in the Philippines.

The right to a balanced and healthful ecology carries with it the correlative duty
to refrain from impairing the environment.

SECTION 3. Definition of Terms — For purposes of this Act, the following
definitions shall apply to the following terms:

a. Battery Manufacturer — every person, firm or corporation that: (i)
produces rechargeable batteries sold or distributed in the Philippines,


or packages such batteries for sale in the Philippines, except that if
‘such production or packaging is for a distributor having the right to
produce or otherwise package that same brand of battery in the
Philippines, then such distributor shall be deemed to be the battery
manufacturer, or (i) imports rechargeable batteries that are sold or
distributed in the Philippines.
Rechargeable battery - any rechargeable nickel-cadmium, sealed
led, lithium ion, nickel metal hydride battery, or any other such dry
cell battery capable of being recharged, or battery packs containing
such batteries, it shall include, but not be limited to, a battery used as
the principal electric power source for vehicle, automobile, boat,
truck, tractor, golf cart or wheelchair, built in battery or for power back
up in an electronic device.
. Disposable battery - or the alkaline type that contains high level of
mercury and has zinc and manganese dioxide as electrodes. The
alkaline electrolyte used is either potassium or sodium hydroxide
These batteries have a steady voltage offering better energy density
and leakage resistance than carbon zinc batteries due to the
manganese dioxide anode material, which is purer and denser,
thereby reducing the space taken up by intemal components only
capable of single use.
This shall include alkaline batteries in various sizes ranging from
AAA to AA, C, D, Sv and AAAA.
Other products of similar contents — this shall include micro-
alkaline cells, button cells that are similar to alkaline/disposable
batteries; this shall also include Lithium-ion and lithium-polymer
power banks that are similar to rechargeable batteries.
Government Hospitals and other Health Service
Establishments- any hospital or institution that provides diagnostic,
therapeutic, rehabilitative, and/or other health care services,
including but not limited to health centers, medical clinics, ambulatory
surgical clinics, dental clinics and laboratories, dialysis centers and
other health-related radiation facilities operated and maintained
either partially or wholly by national, provincial, municipal or city


government or other political subdivision, or by any department,
division, board or other agency thereof.

Export sales- this Act shall adopt the definition provided for under
Executive Order No. 226 also known as “The Omnibus Investments
Code of 1987” as amended, to wit:

“Article 23. "Export sales" shall mean the Philippine
port F.0.B. value, determined from invoices, bills of
lading, inward letters of credit, landing certificates,
and other commercial documents, of exports
products exported directly by a registered export
producer or the net selling price of export product
sold by a@ registered export producer to another
export producer, or to an export trader that
subsequently exports the same: Provided, That
sales of export products to another producer or to an
export trader shall only be deemed export sales
when actually exported by the latter, as evidenced
by landing certificates or similar commercial
documents: Provided, further, That without actual
exportation the following shall be considered
constructively exported for purposes of this
provision: (1) sales to bonded manufacturing
warehouses of export-oriented manufacturers; (2)
Sales to export processing zones; (3) sales to
registered export traders operating bonded trading
warehouses supplying raw materials used in the
manufacture of export products under guidelines to
be set by the Board in consultation with the Bureau
of Internal Revenue and the Bureau of Customs; (4)
‘sales to foreign military bases, diplomatic missions
and other agencies and/or instrumentalities granted
tax immunities, of locally manufactured, assembled
or repacked products whether paid for in foreign
currency or not: Provided, further, That export sales
of registered export trader may include commission
income: and Provided, finally, That exportation of
goods on consignment shall hot be deemed export
‘Sales until the export products consigned are in fact
sold by the consignee.

Sales of locally manufactured or assembled goods
for household and personal use to Filipinos abroad
and other non-residents of the Philippines as well
as retuming Overseas Filipinos under the Internal
Export Program of the government and paid for in
convertible foreign currency inwardly remitted


through the Philippine banking systems shalll also
be considered export sales.”

SECTION 4. Amount of Ecotax — The amount of Ecotax on Rechargeable
and Disposable Batteries shall be equal to one percent (1%) and three
percent (3%) of the actual sale price, respectively. Other products with
similar content shall be taxed on the same percentage accordingly

SECTION 5. Coverage and Fees — The Ecotax on batteries shall be imposed
on the manufacturers, distributors and importers that produce, distribute, and
import rechargeable and disposable batteries and other products of similar
content.

SECTION 6. Exemptions — The following sales of batteries shall be exempt
from the coverage of this Act:

a. Export sales;

b. Purchases made during declared state calamities, disasters and other
emergencies; and

c. Purchases made by Government hospitals and other public health
service establishments.

SECTION 7. Disposition of Revenues Collected— All revenues collected
under this Act shall be earmarked solely and used exclusively for the following
purposes:

a. Providing recycling programs and mechanisms for disposed batteries.

b. Investing on protective measures for the proper disposal of batteries.

. Creating mechanisms encouraging the use of rechargeable batteries to

reduce the need for disposal.

d. Strengthening solid waste management programs.

e. Environmental and health programs of the government.


SECTION 8. Implementing Rules and Regulations - The Department of
Finance (DoF) in coordination with the National Solid Waste Management
Commission (NSWMC) under the Department of Environment and Natural
Resources (DENR), the Department of Trade and Industry (DTI), the
Department of Budget and Management (DBM) shall promulgate not later than
thirty (30) days upon the effectivity of this Act the necessary rules and
regulations for its effective implementation.

SECTION 9. Separability Clause - If any section or part of this Act is
unconstitutional or invalid, the other sections or provisions no other affected
shall remain in full force and effect.

SECTION 10. Repealing Clause - All laws, decrees, executive orders, rules
and regulations, issuances are any part thereof inconsistent with the provisions
are hereby repealed, amended or modified accordingly.

SECTION 11. Effectivity — This act shall take effect fifteen (15) days after

Publication either in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved.