city's TWENTIENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) AUb -4 P5:49 SENATE RECEIVED BY: S. No. _ Introduced by Senator Jinggoy Ejercito Estrada 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 The environment occupies pride of place in the fundamental law and enjoins Filipino citizens to care for our nature. Section 16, Article II of the 1987 Philippine Constitution instituted the following landmark provision on environmental preservation and protection: "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." Various laws were passed to ensure that this constitutional precept is fully respected and honored, such as Republic Act No. 9003 or the Ecological Solid Waste Management Act of 2000, RA 9275 or the Clean Water Act of 2004, and RA 8749 or the Clean Air Act of 1999, and other similar laws. The Philippines prides itself as among the 18 mega-biodiverse countries in the world, containing two-thirds of the earth's biodiversity and between 70% and 80% of the world's plant and animal species. It ranks fifth in the number of plant species and maintains 5% of the world's flora. Species endemism is very high, covering at least 25 genera of plants and 49% of terrestrial wildlife. The country also ranks fourth in bird endemism and considered to host the most number of marine species in the world. It
is also one of the world's biodiversity hotspots with at least 700 threatened species, this, making it one of the top global conservation areas.' But this is being threatened by widespread use of plastics, particularly disposable single-use plastics, in the country. Plastics have outgrown most man-made materials and have long been under environmental scrutiny. The lack of strict implementation of regulations related to plastic waste result in various environmental problems, such as the massive flooding in the metropolis during rainy season and plastic pollution in water streams that end up in our oceans. The Philippines is known for its "tingi" culture or the practice of purchasing goods in small, often single-serving quantities. While rooted in practicality and affordability, it has significantly contributed to the widespread use of single-use plastics and sachets. In fact, the Philippines had the largest share of global plastic waste dumped in the ocean in 2019. In fact, the country was responsible for 36.38% of global ocean plastic waste, far more that the second-largest plastic polluter, India, which, during that same year, contributed 12.92% of the total plastic waste in the ocean.2 This persistent plastic waste problem triggers a chain reaction, with marine animals often having traces of microplastics. Microplastics have also been detected throughout the human body, including lungs, heart, blood, saliva, kidneys and placenta. Researchers noted that studies in cell cultures, marine wildlife and animal models indicate that microplastics can cause oxidative damage, DNA damage, and changes in gene activity, known for risks for cancer development. 1 https://www.cbd.int/countries/profile?country=ph 2 Ramos, D. "How Did the Philippines Become the World's Biggest Ocean Plastic Polluter?" 12 June 2023. https://earth.org/philippines-plastic/
Several towns in the Philippines have passed regulations banning plastic bag use for dry goods and limiting their use in wet markets. Some local governments also included plans to phase-out use of single-use plastics within a couple of years. But, several years later, use of single-use plastics is still prevalent in several areas with such regulations. This measure is not only a tax measure but also a pro-environment bill. Under this proposed legislation, P100 will be imposed per kilogram of single-use plastic bags. The tax rate shall subsequently increase by 4% every year. Proceeds from the imposition of excise tax on single-use plastic bags shall be allocated to the programs of the Department of Environment and Natural Resources in relation to the implementation of Republic Act No. 9003 or the Ecological Solid Waste Management Act of 2000 in municipalities throughout the Philippines. In view of the previous statements, passage of this bill is recommended. JINGGOY EJERCITO ESTRADA
TWENTIENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES AUG -4 P5:49 First Regular Session SENATE RECENED BY: S. No. _ Introduced by Senator Jinggoy Ejercito Estrada 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 House of Representatives of the Philippines in Congress assembled:
Section 1. Short Title. - This Act shall be known as the "Single-Use Plastic Bags
Tax Act".
Sec. 2. Declaration of Policy. - It is hereby declared the policy 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 PESOS (PHP100.00) FOR EVERY KILOGRAM OF SINGLE-USE PLASTIC BAG 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 i 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 Regulations. - Within sixty (60) days from the
effectivity of this Act, the Secretary of Finance shall, upon the recommendation 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. Separability Clause. - If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full force and effect.
Sec. 7. Repealing Clause. - All laws, decrees, executive orders, rules, and
regulations or parts hereof which are contrary to or inconsistent with any provision of this 29 Act are hereby repealed, modified, or amended accordingly.
Sec. 8. Effectivity. - This Act shall take effect fifteen (15) days after its publication
either in the Official Gazette or in at least one (1) newspaper of general circulation. Approved,