NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
A W y
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72 NOV-3 P5«6
RECEIVED BY:
SENATE
S. B. NO.1449
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
IMPOSING EXCISE TAX ON PLASTIC BAGS, AMENDING FOR THE 
PURPOSE SECTION 288 AND ADDING A NEW SECTION 150-C IN 
THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
EXPLANATORY NOTE
Plastics can easily end up in landfills, dumpsites, or oceans and other bodies 
of water if its use continue to be largely unregulated and no proper incentive system 
for the use of alternative products are put in place. This poses not only ecological 
hazard to wildlife, but also public health risks.
In 2016, a body of a rare fish called coelacanth washed up in Indonesia with 
food wrappers around its intestines,1 while a body of a pregnant whale shark was 
found with 50 pounds of plastic in her stomach.2 One study estimates that around 100 
million marine animals die each year because of plastic waste.3
Meanwhile, in 2017, a team of scientists discovered a total of 36 tiny pieces of 
plastic in the bodies of 120 mackerel, anchovies, mullets and croakers, fishes which 
are eaten by humans.4 Another study recently published in May 2022 found 
microplastics in human blood.5 While research is ongoing on the real effects of 
microplastics in the human body, initial research suggests that plastics (and its
1 August 12, 2018. Death by plastic waste. Retrieved from https://theaseanpost.com/article/death-plastic-waste (date last 
accessed: October 19, 2022).
2 April 3, 2019. This pregnant whale died with 50 pounds of plastic in her stomach. Retrieved from 
https://www.nationalQeoQraphic.com/environment/2019/04/dead-pregnant-whale-plastic-italv/ (date last accessed: October 19, 
2022).
3 Supra note 1.
4 
July 
26, 
2017. Plastic microparticles found in flesh 
of fish eaten 
by humans. 
Retrieved 
from
https://www.independent.co.uk/environment/plastic-microparticles-fish-flesh-eaten-humans-food-chain-mackerel-anchovv-
mullet-a7860726.html (date last accessed: October 19, 2022).
5 
June 29, 
2022. Microplastics in the food 
chain: How harmful 
are they? 
Retrieved 
from
https://wvi/w.weforum.org/agenda/2022/06/how-microplastics-get-into-the-food-chain/ (date last accessed: October 19, 2022).


components): (i) disrupt hormones, (ii) increase risk of chronic disease, and (iii) impair 
immune health.6
Given the ecological and health hazards brought about by the rampant use of 
plastics, the government needs to strengthen existing mechanisms to disincentivize 
the use of plastics through taxation. According to one study, a tax on plastics can lead 
to the reduction of the production and consumption of plastic products. The same 
study found that environmental taxation is a key ingredient to catalyze the transition to 
a circular economy.7
This bill seeks to move towards this direction by imposing a P100 excise tax for 
every kilogram of plastic bag removed from the place of production or released from 
the custody of the Bureau of Customs, subject to periodic increase every four years 
effective on January 1,2026.
As one of the flagship measures of the Marcos Administration not only as a 
revenue-generation measure, but also as a mechanism to combat pollution, the 
immediate passage of this bill is earnestly sought.
SENATOR J
VILLA
from
(date
6 
February 18, 
2022. What do we know about microplastics in food? Retrieved
https://www.medicalnewstoday.eom/articles/what-do-we-know-about-microplastics-in-food#The-dangers-of-microplastics 
last accessed: October 19, 2022).
7 September 10, 2018. Plastic taxes vital to cut pollution, new study finds. Retrieved from https://www.clientearth.org/latest/latest 
updates/news/plastic-taxes-vital-to-cut-pollution-new-study-finds/ (date last accessed: October 19, 2022).


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
Senate
o( the:v?tnr^
*22 NOV-3 P5 -06
RECEIVED 8V
SENATE
/T
y
S. B. NO. 1 44.Q
Introduced by SENATOR JOEL VILLANUEVA
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AN ACT
IMPOSING EXCISE TAX ON PLASTIC BAGS, AMENDING FOR THE 
PURPOSE SECTION 288 AND ADDING A NEW SECTION 150-C IN 
THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED
Be it enacted by the Senate and the House of Representatives of the Philippines In 
Congress assembled:
Act"
SECTION 1. Short Title. - This Act shall be known as the “Plastic Bags Tax
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State 
to protect and advance the right of the people to a balanced and healthful ecology in 
accord with the rhythm and harmony of nature through the proper exercise of its power 
of taxation.
SEC. 3. A new section designated as Section 150-C of the National Internal 
Revenue Code of 1997, as amended, is hereby added to read as follows;
“SEC. 150-C. PLASTIC BAGS. -
(A) RATE AND BASE OF TAX. - THERE SHALL BE LEVIED, 
ASSESSED, AND COLLECTED AN EXCISE TAX IN THE 
AMOUNT OF ONE HUNDRED PESOS (PHP100.00) FOR EVERY 
KILOGRAM OF PLASTIC BAG REMOVED FROM THE PLACE OF 
PRODUCTION OR RELEASED FROM THE CUSTODY OF THE 
BUREAU OF CUSTOMS (BOC).
THE RATE OF TAX IMPOSED UNDER THIS SUBSECTION 
SHALL BE INCREASED BY FOUR PERCENT (4%) EVERY YEAR, 
EFFECTIVE ON JANUARY 1, 2026, THROUGH REVENUE 
REGULATIONS ISSUED BY THE SECRETARY OF FINANCE.


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“PLASTIC BAGS” SHALL REFER TO SECONDARY LEVEL 
PLASTICS MADE OF SYNTHETIC OR SEMISYNTHETIC 
ORGANIC POLYMER, SUCH AS ICE", “LABO", OR "SANDO" 
BAGS, WITH OR WITHOUT HANDLE, USED AS PACKAGING 
FOR GOODS OR PRODUCTS.
(B) FILING OF RETURN AND PAYMENT OF EXCISE TAX ON 
PLASTIC BAGS. - THE PROVISIONS OF SECTIONS 130 AND 
131 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, 
AS AMENDED, ON THE FILING OF RETURN AND PAYMENT OF 
EXCISE TAX SHALL APPLY.
(C) NON-PAYMENT OF EXCISE TAX - NON-PAYMENT OF THE 
EXCISE TAX IMPOSED UNDER THIS ACT SHALL BE SUBJECT 
TO THE PERTINENT PROVISIONS UNDER TITLES VIII AND X 
OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS 
AMENDED, REGARDING COLLECTION OF UNPAID TAXES AND 
IMPOSITION OF CORRESPONDING FINES, SURCHARGES, 
PENALTIES, AND IMPRISONMENT OR CLOSURE OF 
BUSINESS.”
SEC. 4. Section 288 of the National Internal Revenue Code of 1997, as 
amended, is hereby further amended to read as follows;
“SEC. 288. Disposition of Incremental AND OTHER Revenues. -
(A)
XXX
(B)
XXX
(C)
XXX
(D)
XXX
(E)
XXX
(F)
XXX
(G)
XXX
(H)
RE'
THE INCREMENTAL REVENUES FROM THE IMPOSITION OF THE EXCISE 
TAX ON PLASTIC BAGS SHALL BE ALLOCATED TO PROGRAMS OF THE 
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR) 
FOR THE IMPLEMENTATION OF REPUBLIC ACT NO. 9003, OTHERWISE 
KNOWN AS THE 'ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 
2000’ IN MUNICIPALITIES.
THE GUIDELINES FOR THE AVAILMENT 
MUNICIPALITIES SHALL BE PREPARED BY THE 
ENVIRONMENT AND NATURAL RESOURCES.
OF FUNDS BY 
DEPARTMENT OF
SEC. 5. Implementing Rules and Regulations. - Within sixty (60) days from 
the effectivity of this Act, the Secretary of Finance shall, upon the recommendation of


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the Commissioners of the Bureau of Internal Revenue and the Bureau of Customs 
and, in consultation with the Department of Environment and Natural Resources, issue 
and promulgate rules and regulations for the effective implementation of this Act.
SEC. 6. Separability Clause. - If any provision of this Act shall be held 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in 
full force and effect.
SEC. 7. Repealing Clause. - All laws, decrees, executive orders, rules, and 
regulations or parts hereof which are contrary to or inconsistent with any provision of 
this Act are hereby repealed, modified, or amended accordingly.
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication either in the Official Gazette or in at least one (1) newspaper of general 
circulation.
Approved,