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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _____ 
-------------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. FRANCE L. CASTRO,  
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,  
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL 
-------------------------------------------------------------------------------------------------------- 
AN ACT 
CLASSIFYING SERVICES RENDERED BY TOLLWAY OPERATORS AS 
VALUE-ADDED TAX EXEMPT TRANSACTIONS, AMENDING FOR THE 
PURPOSE SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE 
CODE, AS AMENDED BY REPUBLIC ACT NO. 9337, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
This Bill seeks to amend the National Internal Revenue Code of 1997, as amended 
by Republic Act No. 9377, by exempting tollway services and the fees tollway operators 
collect from the value-added tax (VAT).  
During the Aquino administration, the Bureau of Internal Revenue (BIR) said the 
government’s move to collect VAT on tollway operations will earn ₱2.3 to ₱3 billion 
annually to ostensibly help fund the social services and infrastructure projects. 
Apart from the recent hike on toll fees, VAT on tollway operations have jacked up 
all the toll fee rates wherein Class 1 vehicles travelling on the North Luzon Expressway 
(NLEX) from Balintawak to Sta. Ines currently pay a total of ₱299 (₱266.96 plus a VAT 
of ₱32.04), Class 2 vehicle: ₱748 (₱667.86 plus a VAT of ₱80.14) and Class 3 vehicle: 
₱897 (₱800.89 plus a VAT of ₱96.11). 
November 9,  2022
1:51 pm
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An ordinary car taking the South Luzon Expressway (SLEX) would pay ₱96 
(₱85.71 plus a VAT of ₱10.29) from Alabang to Calamba while the Skyway charges ₱164 
(₱146.43 plus a VAT of ₱17.57) for the elevated portion from Makati to Alabang. Toll 
rates are charged based on the size of the vehicle which are defined into “classes” therefore 
vehicles are bigger such as trucks and buses are charged higher in which the cost is 
exacerbated with the imposition of the VAT on tollway operations. 
  
Imposing the VAT on tollway operations is definitely another burden on the already 
over-taxed shoulders of our people, especially for those whose incomes are barely enough 
to cover their basic needs. 
  
In these times of unbridled hikes in the prices of oil, food, other commodities and 
services, it is the duty of Congress to work for economic relief to Filipino citizens.  The 
clear-cut removal of VAT on tollway services in the current internal revenue law is the 
most logical option for Congress to act on. 
  
Furthermore, in light of the 2011 Supreme Court decision that upheld the imposition 
of the VAT on tollway services in the absence of a law prohibiting it, the burden is now on 
Congress to come to the aid of  our people by removing tollway services from the VAT as 
a direct form of economic relief. Whatever government revenue losses incurred will be 
offset by the increased purchasing power of all Filipino citizens that will prove better in 
the long run in making the economy a vibrant and equitable one. 
  
This Bill was first filed by Bayan Muna Partylist during the 15th Congress as House 
Bill 5303 and was approved at the committee level. It was then refiled in the 16th and 17th 
Congress as HBs 346 and 1010, respectively. 
 
In view of the foregoing, approval of this Bill is earnestly sought. 
  
Approved,  
 
 
________________________________ 
Rep. FRANCE L. CASTRO 
ACT Teachers Party-List 
 
 
 
________________________________ 
Rep. ARLENE D. BROSAS 
GABRIELA Women’s Party 
 
________________________________ 
Rep. RAOUL DANNIEL A. MANUEL 
KABATAAN Party-List 
 
 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _____ 
-------------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. FRANCE L. CASTRO,  
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,  
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL 
-------------------------------------------------------------------------------------------------------- 
AN ACT 
CLASSIFYING SERVICES RENDERED BY TOLLWAY OPERATORS AS 
VALUE-ADDED TAX EXEMPT TRANSACTIONS, AMENDING FOR THE 
PURPOSE SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE 
CODE, AS AMENDED BY REPUBLIC ACT NO. 9337, 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) of the National Internal Revenue Code, as amended by 
Republic Act No. 9337, is hereby further amended to read as follows: 
“SEC. 109. Exempt Transactions. - (1) Subject to the provisions of subsection (2) 
hereof, the following transactions shall be exempt from the value-added tax: 
“(A) xxx 
“(B) xxx 
“xxx 
“(U) xxx 
“(V) xxx 
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“(W) SERVICES RENDERED BY TOLLWAY OPERATORS. 
  
SECTION 2.  Repealing Clause. – All other laws, acts, decrees, executive orders, 
issuances, and rules and regulations or parts thereof which are contrary to and inconsistent 
with any provisions of this Act are hereby repealed, amended, or modified accordingly. 
  
SECTION 3. Separability Clause. – If any provision of this Act is subsequently declared 
unconstitutional, the validity of the remaining provisions hereof shall remain in full force 
and effect. 
  
SECTION 4. Effectivity Clause. – This Act shall take effect immediately after its 
publication either in the Official Gazette or in a newspaper of general circulation in the 
Philippines. 
 
Approved,