Single-use Plastic Bags Tax Act

Senace Offier of the sometay TWENTIETH CONGRESS OF THE 25 NOV -3 P1:05 REPUBLIC OF THE PHILIPPINES First Regular Session S. No. SS NO. 1452 Introduced by Senator Raffy 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 EXPLANATORY NOTE According to the United Nations Environment Programme, single -use plastics refers to plastic packaging that is used only once before they are thrown away or recycled. Examples include grocery bags, food packaging, bottles, straws, containers, cups and cutlery. The United Nations Environment Programme (UNEP), sees Plastic Pollution as a global epidemic. It has been reported that approximately 6.3 billion tons of plastic waste were produced from 1950 to 2018 yet only 9% have been recycled and 12% incinerated. A substantial amount of plastic still ends up dumped or in landfills. Plastic pollution not only affects the natural processes but also alters the habitats of humans and animals, as well as the food production and social well-being of billions of people. The Philippines ranked among the top sources of plastic waste dumped into the ocean, generating approximately 2.7 million metric tons of plastic waste annually, with around half a million metric tons leaking into the sea each year, according to a 2015 study by the Ocean Conservancy and the McKinsey Center for Business and Environment.

Evidently, one of the major impacts of plastic pollution in our country is the rapid clogging of drainage systems and waterways due to waste runoff endangering public health and sanitation, particularly during periods of heavy rainfall. Thus, without government intervention, it is expected that by 2040, plastic pollution in the country could reach up to more or less 9 million metric tons. Hence, the proposed measure aims to impose an excise tax on single-use plastic bags removed from the place of production or released from the custody of the Bureau of Customs, subject to periodic increase every four (4) years. It is for this purpose that the approval of this bill is earnestly sought.

Senair Office of the Secretarp TWENTIETH CONGRESS OF THE 25 NOV -3 P1:05 REPUBLIC OF THE PHILIPPINES First Regular Session S. No. SEN 1452 Introduced by Senator Raffy 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 Be it enacted by the Senate and the House of Representatives of the Philippines, in Congress assembled: 1 Section 1. Short Title. —This Act shall be known as the "Single-Use Plastic Bags Tax 2 Act." 3 Sec. 2. Declaration of Policy - It is hereby declared as the policy of the State to protect and advance the right of the people to a balanced and healthful ecology in accord with 5 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

7 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 TWENTY PESOS (PHP20.00) FOR EVERY KILOGRAM OF SINGLE-USE PLASTIC BAGS REMOVED FROM THE PLACE OF PRODUCTION OR RELEASED FROM THE 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, 2026 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 Incrementa/ 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 Regulations. — Within sixty (60) days from the effectivity

of this Act, the Secretary of Finance shall, upon the recommendation of the Commissioners 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 the effective implementation of this Act.

Sec. 6. Repealing Clause. - All laws, decrees, executive orders, rules, and regulations.

and other issuances, or parts thereof, which are contrary to or inconsistent with this Act. are hereby repealed, amended. or otherwise modified accordingly.

Sec.7. Separability Clause. - If any provision of this Act is declared invalid or

unconstitutional, the remaining provisions hereof which are not affected shall remain in full force and effect.

Sec.8. Effectivity. - This Act shall take effect fifteen (15) days following its publication in

the Official Gazette or in at least one (1) newspaper of general circulation. Approved,