Senate Office of the Berretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 OCT 20 P2:07 SENATE RECEIVED BY: Senate Bill No. 1456 Introduced by Senator Erwin T. Tulfo AN ACT IMPOSING EXCISE TAX ON SINGLE-USE PLASTIC BAGS, AMENDING FOR THE PURPOSE SECTION 288 AND ADDING A NEW SECTION 150-C IN THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES EXPLANATORY NOTE Article II, Section 16 of the 1987 Philippine Constitution provides: "The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature." Plastic pollution remains one of the most pressing environmental challenges of our time. According to the United Nations Environment Programme (UNEP), the equivalent of 2,000 garbage trucks full of plastic are dumped into the world's oceans, rivers, and lakes every day. Globally, 19-23 million tons of plastic waste leaks into aquatic ecosystems each year, polluting our lakes, rivers and seas.' 1 "Plastic Pollution", United Nations Environment Programme, Retrieved from https://www.unep.org/plastic- pollution.
In the Philippines, the scale of plastic consumption is deeply concerning. The World Bank estimates that Filipinos use an overwhelming 163 million sachets each day and a staggering 2.3 million tons of plastic waste generated annually. Alarmingly, only 28% of key plastic resins are being recycled, 2 with the rest clogging waterways, filling landfills, and contributing to flooding and pollution. This proposed legislative measure seeks to address the growing economic, environmental, and social costs of plastic pollution through the imposition of excise tax on single-use plastic bags. Beyond its environmental objectives, this measure also aims to generate additional revenue that can support government programs promoting sustainability, waste reduction, and environmental protection. In view of the foregoing, the urgent passing of this bill is earnestly sought. ERWIN T. TULFO 2 "The Growing Threat of Microplastics and Plastics", National Research Council of the Philippines, Retrieved from https://nrcp.dost.gov.ph/the-growing-threat-of-microplastics-and-plastics/.
Semale Office of the Secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) 25 OCT 20 P2:07 RECEIVED BY: SENATE Senate Bill No. 1456 Introduced by Senator Erwin T. Tulfo AN ACT IMPOSING EXCISE TAX ON SINGLE-USE PLASTIC BAGS, AMENDING FOR THE PURPOSE SECTION 288 AND ADDING A NEW SECTION 150-C IN THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as "Single-
2 Use Plastic Bags Act".
SEC 2. Declaration of Policy. - It is hereby declared as the policy
5 of the State to protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature through the proper exercise of its power of taxation.
SEC 3. A new section designated as Section 150-C of the
National Internal Revenue Code of 1997, as amended, is hereby added to read as follows: "SEC. 150-C. SINGLE-USE PLASTIC BAGS. -
(A) RATE AND BASE OF TAX. - THERE SHALL BE LEVIED, ASSESSED, AND COLLECTED AN EXCISE TAX IN THE AMOUNT OF ONE HUNDRED FIFTY PESOS (PHP150.00) FOR EVERY KILOGRAM OF SINGLE-USE PLASTIC BAGS REMOVED FROM THE PLACE OF PRODUCTION OR RELEASED FROM CUSTODY OF THE BUREAU OF CUSTOMS. THE RATE OF TAX IMPOSED UNDER THIS SUBSECTION SHALL BE INCREASED BY FOUR PERCENT (4%) EVERY YEAR, EFFECTIVE ON JANUARY 1, 2028 THROUGH REVENUE REGULATIONS ISSUED BY THE SECRETARY OF FINANCE. SINGLE-USE PLASTIC BAGS SHALL REFER TO SECONDARY LEVEL PLASTICS MADE OF SYNTHETIC OR SEMISYNTHETIC ORGANIC POLYMER, SUCH AS "ICE", "LABO" OR "SANDO" BAGS, WITH OR WITHOUT HANDLE, USED AS PACKAGING FOR GOODS OR PRODUCTS. (B) FILING OF RETURN AND PAYMENT OF EXCISE TAX ON SINGLE-USE PLASTIC BAGS. - THE PROVISIONS OF SECTIONS 130 AND 131 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, ON THE FILING OF RETURN AND PAYMENT OF EXCISE TAX SHALL APPLY. (C) NON-PAYMENT OF EXCISE TAX. - NON- PAYMENT OF THE EXCISE TAX IMPOSED UNDER THIS ACT SHALL BE SUBJECT TO THE PERTINENT PROVISIONS UNDER TITLES VIII AND X OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, REGARDING COLLECTION OF UNPAID TAXES AND
IMPOSITION OF CORRESPONDING FINES, SURCHARGES, PENALTIES, AND IMPRISONMENT OR CLOSURE OF BUSINESS."
SEC 4. Section 288 of the National Internal Revenue Code of
1997, as amended, is hereby further amended to read as follows: "SEC. 288. Disposition of Incremental AND OTHER Revenues.- "A) xxx "B) xxx "C) xxx "D) xxx "E) xxx "F) xxx "G) xxx "H) DISPOSITION OF INCREMENTAL REVENUES FROM THE EXCISE TAX ON SINGLE-USE PLASTIC BAGS.- THE INCREMENTAL REVENUES FROM THE IMPOSITION OF THE EXCISE TAX ON SINGLE- USE PLASTIC BAGS SHALL BE ALLOCATED TO PROGRAMS OF THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES FOR THE IMPLEMENTATION OF REPUBLIC ACT NO. 9003, OTHERWISE KNOWN AS THE 'ECOLOGICAL SOLID WASTE MANAGEMENT ACT OF 2000' IN MUNICIPALITIES."
SEC 5. Implementing Rules and Regulation. - Within sixty (60)
days from the effectivity of this Act, the Secretary of Finance shall, upon the recommendation of the Commissioner of the Bureau of Internal Revenue and the Bureau of Customs and, in consultation with the Department of Environment and Natural Resources, issue and promulgate rules and regulations for its effective implementation.
SEC 6. Separability Clause. - Should any provision or part of
this Act be declared unconstitutional or invalid, the other provisions and parts hereof, insofar as they are separable from the invalid ones, shall remain in full force and effect.
SEC 7. Repealing Clause. - All laws, decrees, orders, issuances,
rules, and regulations or parts thereof, which are inconsistent with this Act are hereby repealed or modified accordingly.
SEC 8. Effectivity. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,