Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

(3 rvceven A
UL 2013

SIXTEENTH CONGRESS 1
DAES

First Regular Session

1336

HOUSE BILL NO.

Introduced by Honorable GERALD ANTHONY V. GULLAS, JR.

EXPLANATORY NOTE

‘The measure seeks to give additional incentives to Barangay Captains, Councilors,
Secretary, Treasurers, including Tanods, Members of the Lupong Tagapamayapa and all
Barangay employees.

Our Barangay Officials are the frontliners. They make democracy at the grassroots level.

Most important of the benefits given the Barangay officials and Barangay employees is
the exemption from income tax of their salaries wages and other emoluments, such as honoraria
and allowances, including any benefits that they may receive from government on account of
their work or employment. Added to this are some equally important benefits; (a) benefit under
the GSIS; (b) coverage under existing medical health service programs of government under
existing laws, and © free legal representation.

This measure therefor seeks to give due recognition to the important job being performed
by these grassroots workers as well as to acknowledge the vital role being played by the smallest
government unit and political subdivision called the Barangay.

In view of the foregoing, approval of the measure is urgently f@qui

GERALD ONY/V. GULLAS, JR.


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

HOUSEBILLNO.__1336

Introduced by Honorable GERALD ANTHONY V. GULLAS, JR.

ANACT
PROVIDING INCENTIVES TO ALL BARANGAY OFFICIALS, INCLUDING
BARANGAY TANODS AND MEMBERS OF THE LUPONG TAGAPAMAYAPA, AND
BARANGAY EMPLOYEES AND FOR OTHER PURPOSES

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

SECTION 1. Title. - This Act shall be known as the “Barangay Incentives Act of 2013”,

SEC. 2. Declaration of Policy. - It is the declared policy of the State to promote and
enhance the efficiency and responsiveness of barangay officials and employees, the government
workers who make democracy work at the grassroots levels in the smallest territorial and
political subdivision of the government which is the barangay. To achieve this objective, the
State shall adopt measures and provide such incentives not only to help ensure the faithful
performance of the duties and functions of barangay officials and employees but also to raise
their quality of life.

SEC. 3. Tax Exemption. - All amounts received by barangay officials, including
Barangay Tanods and members of the Lupong Tagapamayapa, hereinafter particularly referred to
as “barangay officials and barangay employees”, as salaries, wages, compensation, remuneration
and other emoluments, such as honoraria and allowances shall be exempt from income taxation,
Gross benefits received by such officials and employees, of whatever kind of character, shall
likewise be exempt from taxation.

SEC. 4, Exemption from Capital Gains and Transfer Taxes. - The sale, exchange or
disposition of real property by barangay officials and barangay employees shall be exempt from
capital gains and other national taxes as long as the proceeds of such sale, exchange or
disposition shall be directly and exclusively used by such officials and employees to acquire a
house and lot, not exceeding 500 square meters, for family dwelling. The acquisition of such
house and lot for family dwelling purposes shall likewise be exempt from any national or local
taxes and fees in connection with the transfer and registration of such property in the name of the
barangay official or barangay employee concemed.


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SEC. 5. GSIS Benefits Coverage. - All barangay officials and employees shall be
considered members of the Government Service Insurance System (GSIS) and shall be covered
with life insurance and social security protection, including retirement, disability, separation and
unemployment benefits and such other benefits as may extend by the GSIS, subject to limitations
provided by law.

The GSIS shall make special provisions in order to faciltitate the inclusion of barangay
officials and barangay employees, in the benefit coverage of GSIS.

SEC. 6. Health Benefits. - Government medical and health insurance programs under
existing laws shall include in their coverage free basic health services and medicine to barangay
officials and barangay employees

SEC. 7. Legal Representation. - Barangay officials and barangay employees who maybe
be involved as party litigants in administrative or criminal cases filed in connection with the
performance of their official duties shall, as a member of right, be entitled to the free legal
services of the Public Attomney's Office (PAO) who shall facilitate the legal representation of the
such officials and employees by a counsel

Such benefit of legal representation shall include an exemption from payment of docket
and other lawful fees, and of transcripts of stenographic notes which the court may order to be
furnished the barangay officials and employees.

SEC. 8. Implementing Rules and Regulations. Within six (6) months from the effectivity
of this Act, the Department of Interior and Local Government, in coordination and consultation
with the Department of Justice, the Department of Health, the Government Service Insurance
System and other agencies concerned, shall promulgate such rules or guidelines as maybe
necessary for the proper implementation of this Act.

SEC. 9. Separability Clause. - If any provision of this Act or the application of such
provision to any person or circumstances is declared unconstitutional, the remainder of this Act
or the application of such provision to other persons or circumstances shall not be affected by
such declaration.

SEC. 10. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts
thereof which are inconsistent with or contrary to the provision of this Act are hereby amended,
modified or repealed accordingly.

SEC. 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,