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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO.  3201 
Introduced by Representative MARLYN L. PRIMICIAS-AGABAS 
EXPLANATORY NOTE 
Taxes are the lifeblood of the government. Without them, the State cannot sustain 
its existence, carry out its essential functions, or deliver the basic services necessary for 
the welfare of the people. This principle is enshrined in Philippine jurisprudence, notably in 
Commissioner of Internal Revenue v. Algue, Inc. (G.R. No. L-28896, February 17, 1988), 
where the Supreme Court emphasized that taxes are the price we pay for a civilized 
society. Despite their critical role in national development, public awareness and 
understanding of taxation in the Philippines remain dismally low—particularly among the 
youth and first-time taxpayers. 
The familiar adage that nothing is certain except death and taxes has persisted 
across generations because it reflects two inevitable realities. Yet, while people generally 
accept death as part of life and even prepare for it, paying taxes is often met with 
reluctance, skepticism, or outright avoidance. Ironically, taxation precedes even death, as 
the obligation to pay taxes spans one’s lifetime and may even continue through estate 
taxes after death. This widespread aversion to paying taxes highlights the need to address 
the root cause of poor tax compliance: the lack of a strong culture of tax literacy and civic 
responsibility. 
Many Filipinos view taxes as a burden rather than a civic duty, a perception often 
fueled by allegations of corruption, inefficiencies in public spending, and a lack of 
transparency in governance. There are also those who openly evade taxes yet expect to 
benefit from public services funded by the very contributions they avoid making. These 
attitudes reflect a broader systemic issue: the failure to integrate tax education into the 
formative years of learning, when civic values and national consciousness are first 
developed. 
This bill seeks to address this deficiency by institutionalizing tax education in both 
the formal and informal education systems. It proposes a structured, age-appropriate, and 
progressive approach to teaching taxation from the elementary level up to college, to help 
young Filipinos understand that paying taxes is not merely a legal obligation but a moral 
and civic responsibility. By embedding tax education into the curriculum, students will be 
equipped with foundational knowledge of the tax system, its role in national development, 
and its importance in sustaining essential government services such as healthcare, 
education, infrastructure, and social protection. 
International experience strongly supports this initiative. According to the 
Organization for Economic Co-operation and Development (OECD), taxpayer education 
plays a central role in promoting voluntary compliance and improving tax morale, especially 
in developing countries. In its report Building a Tax Culture, Compliance and Citizenship, 
the OECD evaluated 140 taxpayer education initiatives across 59 countries and found that 
over 80% led to improvements in tax morale. The report concluded that increasing tax 
literacy directly contributes to building a responsible and participatory tax culture, where 
citizens recognize the tangible impact of taxes on their daily lives and become more 
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engaged in demanding accountability from government. 
In a country like the Philippines, where tax evasion and low morale continue to 
undermine fiscal stability, instilling a strong taxpaying culture from a young age is not only 
practical but imperative. The COVID-19 pandemic further magnified the importance of 
sufficient public revenues, as governments were called upon to deliver urgent social 
services and medical interventions—responses made possible only through the support of 
taxpayers. In times of crisis and recovery alike, the nation’s ability to function rests on a 
citizenry that understands and fulfills its tax obligations. 
While penalties, audits, and other enforcement mechanisms remain necessary, the 
cornerstone of any sustainable and effective tax system is voluntary compliance. Such 
compliance is more likely when citizens are tax-literate and see the connection between 
their contributions and the public benefits they receive. Educating the youth about the 
structure of the tax system, the responsibilities of taxpayers, the consequences of tax 
evasion, and the reciprocal relationship between citizens and the State will ultimately help 
produce a generation that values honesty, accountability, and civic engagement. 
Academic studies reinforce this view. In one such study, The Imperative of Basic 
Tax Education for Citizens, published by the American Journal of Business Education, it 
was found that students who are educated about taxation are more likely to become 
compliant and responsible taxpayers, reducing the need for costly enforcement. By 
fostering early awareness of the importance of taxes, the government can reduce tax 
avoidance, improve collection, and strengthen trust between the public and state 
institutions. 
Through this proposed measure, students will not only understand the technical 
aspects of taxation but also internalize the broader democratic principle that taxation is a 
shared social responsibility. With proper education, citizens are more likely to pay their 
taxes on time and in full, while also actively participating in governance by holding public 
officials accountable for the use of public funds. 
In sum, this bill aims to institutionalize tax education to strengthen public 
understanding of taxation, enhance voluntary compliance, and build a culture of 
responsible citizenship. It envisions a future where paying taxes is not feared or avoided 
but embraced as a meaningful contribution to nation-building. The timely and decisive 
passage of this bill is, therefore, earnestly sought. 
MARLYN L. PRIMICIAS-AGABAS 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO.  3201 
Introduced by Representative MARLYN L. PRIMICIAS-AGABAS 
AN ACT 
MANDATING THE TEACHING OF TAX LITERACY, CONSCIOUSNESS 
AND RESPONSIBILITY IN INTERMEDIATE, SECONDARY, TECHNICAL- 
VOCATIONAL, AND TERTIARY EDUCATION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Tile. - This Act shall be known as the "Tax Consciousness and 
Responsibility Act". 
SECTION 2. Declaration of Policy. - It is a constitutionally declared 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, rising standard of living, and improved quality of life for all." 
Toward this end, the State shall responsively and responsibly exercise its inherent power of 
taxation to mobilize resources for the common good. 
Corollary to this, the State shall also inculcate in its citizens the overriding importance 
of regularly and promptly paying the correct amount of taxes. To this end, an age-appropriate 
curriculum shall be included in intermediate, secondary, technical-vocational, and tertiary 
education in both public and private schools, colleges, and universities for the teaching of the 
importance of taxes as the lifeblood of the nation and tax consciousness and responsibility of 
every taxpayer. 
Through education, to which is assigned the highest budgetary priority, the State shall 
instill in the youth the citizens' patriotic duty to pay promptly the correct amount of taxes as the 
citizens' valuable contribution to economic development and nation-building. 
SECTION 3. Definition of Terms. - For purposes of this Act, the following terms shall 
be defined as follows: 
(a)
Tax is a monetary contribution levied on individuals or firms/corporations by a
government entity whether local or national to finance government activities and services to 
the people.  
(b)
Tax Compliance refers to the ability and willingness of taxpayers to comply with
the tax laws, declare the correct income for each year, and pay the right amount of taxes on 
time. 
(c)
Tax Consciousness is the awareness and understanding of the concept of
taxation and the importance of paying taxes on time. 


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(d) 
Tax Education is the inclusion of tax related lessons/courses in the curricula of 
educational institutions aimed at instilling tax consciousness, literacy, and compliance as a 
civic duty or social responsibility. 
(e) 
Tax Literacy pertains to the ability to know and understand the tax concepts, 
laws and related issues, and be updated on developments on tax and taxation. 
(f) 
Tax Morale is the intrinsic motivation to pay taxes, it measures taxpayer 
perceptions, judgments, and attitudes towards paying or evading taxes. 
(g) 
Tax Return is a form filed with the tax authority on which the taxpayer states 
his/her income, expenses and other tax information. 
(h) 
Taxation is the power of the State to levy charges or burdens upon persons, 
property or property rights for the use, operation and support of the government to enable it to 
discharge its functions. 
(i) 
Voluntary Tax Compliance refers to the ability and willingness of taxpayers to 
file and report honest and accurate annual returns without proactive action by the government. 
SECTION 4. Mandatory Tax Education. - The State shall provide for the mandatory 
teaching of tax literacy; instilling tax consciousness, compliance, and responsibility; and 
improving tax morale, as defined in the preceding Section 3 of this Act as a civic duty or social 
responsibility in all intermediate and secondary education classes as well as in all graduating 
classes in technical-vocational and tertiary education in both public and private schools, 
colleges, and universities. 
SECTION 5. Mandate of the Department of Education. – The Department of 
Education (DepEd) is mandated to prepare age-appropriate tax education curriculum and 
modules, in coordination with the Commission on Higher Education (CHED) and the Technical 
Education and Skills Development Authority (TESDA) and in consultation with the Bureau of 
Internal Revenue (BIR); the Bureau of Customs (BoC); recognized tax experts, lawyers, and 
academicians; and local and national youth organizations: Provided, That private educational 
institutions shall adopt these curriculums and modules or modify them so long as that the 
curriculums or modules they craft remain in accord with the objectives of this Act: Provided, 
Further, That the DepEd shall take full responsibility for the strict, effective, and sustained 
implementation of the tax education curriculum and modules. 
 
SECTION 6. Subjects for Instruction. - The following subjects, among others, shall 
be included in the curriculum: 
 
(a) History of taxation. 
 
(b) Importance of taxation for national and local development and delivery of basic 
social and economic services. 
 
(c) Tax literacy and consciousness as a civic duty. 
 
(d) Facets and kinds of national and local taxes. 
 
(e) Regular, prompt, and correct payment of taxes as a citizen's duty, responsibility, 
and obligation. 
 
(f) 
The obligation of the State to pay back to the people the taxes they have 


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contributed; and 
 
(g) The right of citizens to demand accountability and good governance. 
SECTION 7. Tax Consciousness Week. ~ The observance of the "Tax Consciousness 
Week" on the first week of April of every year as declared under Proclamation 960, s. of 1972 
shall be heightened. Week-long activities shall be conducted under the auspices of the DoF 
in collaboration with relevant government agencies and private entities, notably educational 
institutions and the print, broadcast, social and web media. 
 
SECTION 8. Complementary Role of Parents. - Consistent with the constitutional 
recognition of the "natural and primary rights and duty of parents in the rearing of the youth for 
civic efficiency and the development of moral character", parents should instill tax 
consciousness in their children at the appropriate age. 
SECTION 9. Inculcation of Tax Consciousness in Youth Development Plans. - 
Inculcation of tax consciousness, literacy and compliance shall be included in the Philippine 
Youth Development Plan and the Local Youth Development Plans of the Sangguniang 
Kabataan (SK) councils and the Local Youth Development Councils (LYDCs). 
SECTION 10. Tax Education Committee. - A Tax Education Committee is hereby 
created to monitor and ensure the full and strict implementation of this Act. The Committee 
shall be headed by the DepEd Secretary as Chairperson, the DoF secretary as Co-
chairperson, and the CHED Chairperson, TESDA Director-General, and the Chairperson and 
Chief Executive Officer of the National Youth Commission (NYC) as members. It shall initially 
be convened within fifteen (15) days of the effectiveness of this Act. The Committee shall 
submit an annual report on the implementation of the Act to the Office of the President of the 
Senate and the Office of the Speaker of the House of Representatives. 
SECTION 11. Implementing Rules and Regulations. - DepEd, in coordination with 
the CHED, TESDA, BIR, and BoC, shall promulgate the Implementing Rules and Regulations 
(IRR) of this Act within thirty (30) days of its effectiveness. 
SECTION 12. Separability Clause. - If for any reason, any section or provision of this 
Act is declared unconstitutional or invalid, such other sections or provisions not affected 
thereby shall remain in full force and effect. 
SECTION 13. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations and other issuances or parts thereof which are inconsistent with any provision/s of 
this Act shall be deemed repealed, amended or modified accordingly. 
SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,