Full Tax Benefits to Government Purchases During a State of Calamity

Senate as emie of the germany TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 SEP -2 P4:47 SENATE RECEIVED BY: S.B. No. 1334 Introduced by SENATOR IMEE R. MARCOS AN ACT GRANTING FULL TAX BENEFITS TO GOVERNMENT PURCHASES DURING A STATE OF CALAMITY, AND FOR OTHER PURPOSES EXPLANATORY NOTE Article II, Section 9 of the 1987 Constitution provides that "The State shall 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, a rising standard of living, and an improved quality of life for all." Fulfilling this constitutional duty is most critical during times of disaster. As the Philippines is situated along the Pacific Ring of Fire and within the typhoon belt, it is exceptionally prone to a wide range of natural calamities. This reality has been underscored with devastating intensity in recent years. In 2024 alone, the country endured a total of seventeen (17) tropical cyclones, with many battering the country with destructive force. These included Typhoon Carina (Gaemi), which inundated Northern Luzon, and the catastrophic Typhoon Enteng (Yagi, which caused widespread flooding, massive damage to agriculture and infrastructure, and significant loss of life. The latter part of the year saw no respite, bringing further onslaughts from Severe Tropical Storm Trami (Kristine) and Super Typhoons Leon (Kong-rey) and Pepito (Man-yi). The combined effects of Tropical Storm Wipha (formerly, Crising), the enhanced Southwest Monsoon, Tropical Storm Co-May (formerly, Emong) and Tropical Strom Francisco (formerly, Dante) in July triggered a massive wave of calamity declarations across the country. According to recent reports, the following areas were compelled to declare a state of calamity, among others: in the National Capital Region are Quezon City, Manila, Malabon, Las Piñas, Marikina, Navotas, Valenzuela, Caloocan, Muntinlupa, and Parañaque; in the Cordillera Administrative Region (CAR), La Trinidad, Benguet; in Region I, the entire province of La Union and several towns in Pangasinan; in Region III, the entire provinces of Bataan and Pampanga, with several municipalities in Bulacan and Tarlac; in Region IV-A, the entire provinces of Cavite, Rizal, and Laguna, and several towns in Batangas; in Region IV-B, Roxas, Palawan

and the entire province of Oriental Mindoro; in Region VI, the entire province of Negros Occidental and several municipalities in Antique; and in Region VII, Cebu City. This proposed measure seeks to grant full tax benefits for the purchase of food, medicines, medical supplies, clothing, and hygiene kits which are for distribution during a declared state of calamity. In light of the foregoing, the immediate approval of this bill is earnestly sought. Imee h. Marca TMEE R. MARCOS J

Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session SEP -2 SENATE RECEIVED BY: S.B. No. 1334 Introduced by SENATOR IMEE R. MARCOS AN ACT GRANTING FULL TAX BENEFITS TO GOVERNMENT PURCHASES DURING A STATE OF CALAMITY, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Applicability. - This Act shall be applicable to all national government

agencies (NGAs) and local government units (LGUs) that purchase goods for distribution during a declared state of calamity.

Sec. 2. State of Calamity. - A state of calamity shall be understood as a condition

involving mass casualty and/or major damages to property, disruption of means of livelihoods, roads and normal way of life of people in the affected areas as a result of the occurrence of natural or human-induced hazard; Provided, That there must first be a declaration from the President that there is a state of calamity in a local government unit or in the country.

Sec. 3. Full Tax Benefits. - For purposes of this Act, full tax benefits shall pertain

to the following: a) Value-Added Tax (VAT) Exemption. - The purchases of all NGAs and LGUs of food, medicines, medical supplies, clothing, and hygiene kits for distribution during a declared state of calamity shall be exempted from VAT; and b) Customs Duties Exemption. - The purchases of all NGAs and LGUs of food, medicines, medical supplies, clothing, and hygiene kits for distribution during a declared state of calamity shall be exempted from customs duties.

Sec. 4. Separability Clause. - If any portion or provision of this Act shall be

declared unconstitutional or invalid, the remainder of this Act or any provision hereof not otherwise affected shall remain valid and in full force and effect.

Sec. 5. Repealing Clause. - All provisions of existing laws, executive orders,

presidential decrees or issuances, presidential proclamations, letters of instructions, rules and regulations, or parts thereof which are in conflict or inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days following

the completion of its publication either in the Official Gazette or in a newspaper of general circulation in the Philippines. Approved,