Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS.

First Regular Session

507

House Bill No.

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

One of the immediate remedial measures being explored in order to address the
current power crisis in Mindanao is the deployment of additional power barges. However, the
cost of generating power from these barges is very high due to the steep prices of petroleum
products in the world market. Further exacerbating the situation is the expanded value added
tax being imposed on the sale and imporiation of these petroleum products.

The burden of producing power at a very high cost is however passed on to the
consumers in the form of very high price of electricity and not borne by these power
producers. This further strains the already limited budget for the people of Mindanao as it
takes precious resources away from their more important basic needs such as food, clothing,
medicines and shelter.

This bill seeks to resolve this situation by proposing to exempt the sale and
importation of petroleum products for the power barges which shall be utilized to address the
power crisis in Mindanao and the sale of electricity generated therefrom, from the Expanded
Value Added Tax (EVAT). The exemption being proposed by this measure is envisioned to
lower the cost of electricity in order to ease the burden of the people in Mindanao and put
back on track the development of the so-called “Land of Promise.”

Due to the foregoing, early passage of this bill is earnestly sought.

&S i Z CRRIOR

Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS.
First Regular Session

House Bill No. 50?

Introduced by Hon. Rodolfo G. Biazon

AN ACT

EXEMPTING THE SALE OR IMPORTATION OF PETROLEUM PRODUCTS FOR
POWER BARGES BEING UTILIZED TO ADDRESS THE POWER CRISIS IN
MINDANAO AND THE ELECTRICITY GENERATED THEREFROM, FROM THE
EXPANDED VALUE ADDED TAX, AMEND! FOR THIS PURPOSE REPUBLIC
ACT NUMBERED EIGHTY FOUR TWENTY FOUR, OTHERWISE KNOWN AS
THE TAX REFORM ACT OF 1997, AS AMENDED, AND FOR OTHER PURPOSES.

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

SECTION 1. Section 109 (1), Chapter 1, Title IV, of Republic Act No. 9337, as
amended , is hereby further amended by inserting two (2) new sub-paragraphs before sub-

paragraph “a” which shall become the new sub-paragraphs “a” and “b” which shall read as
follows:

“(A) SALE OR IMPORTATION OF PETROLEUM PRODUCTS FOR POWER
BARGES BEING UTILIZED TO ADDRESS THE POWER CRISIS IN
MINDANAO;”

“(B) SALE OF ELECTRICITY GENERATED BY POWER BARGES BEING
UTILIZED TO ADDRESS THE POWER CRISIS IN MINDANAO;”

Sec. 2. Sub-Paragraphs “a” to “v” of Section 109 (1) Chapter 1, Title IV of the same
law are hereby re-lettered accordingly.

Sec. 3. Duration of the Exemption. — The exemption granted herein shall be valid and
effective for a period of one (1) year from its effectivity, unless sooner withdrawn by a
resolution of Congress, and subject to such rights and benefits that may have been vested,
and obligations that may have been incurred thereof.

Sec. 4. Separability Clause. — If for any reason any provision of this Act is declared

1


unconstitutional or invalid, other parts or provisions hereof which are not affected thereby
shall continue to be in full force and elect.

Sec 5. Repealing Clause. — All laws, decrees, orders, rules and regulations, or
portions thereof, inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 6. Effectivity Clause. - This Act shall take effect on the day following its
publication in at least two (2) national newspapers of general circulation.

Approved,

v