Sample House Bill

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SECTION 6. Computation of Majority. – To compute for qualification for the exemption, income or revenue directly related to the biofuel business shall be divided by the total annual income of the business, ratio of which must be greater than or equal to seventy percent (70%).

CHAPTER III

TAX EXEMPTIONS FOR BIOFUEL IMPORT AND EXPORT

SECTION 7. Biofuel Import. – Petroleum Companies with majority of its import operations relate to the import of Biofuel or Renewable Fuel shall be exempted to value-added taxes (VAT) on importations, as well as custom duties thereof and applicable taxes on the shipment of the imported renewable fuels.

SECTION 8. Biofuel Export. – Petroleum Companies with majority of its export operations relate to the export of Biofuel or Renewable Fuel shall be exempted to taxes relating to the production and distribution of such overseas, including to business taxes and income taxes for TWO BILLION PESOS (PHP 2,000,000,000.00) of their annual revenues directly related to the biofuel business and the export of such.

SECTION 9. Computation of Majority. – To compute for qualification for the exemption, income or revenue directly related to the biofuel business import and/or export shall be divided by the total annual income of the business, ratio of which must be greater than or equal to seventy percent (70%).

CHAPTER IV

FINAL PROVISIONS

SECTION 10. Public Information Campaign. – The DOE, in coordination with the Board and the Philippine Information Agency (PIA) shall undertake an information campaign to educate the public on the tax exemptions in the industry of renewable fuel.

SECTION 11. Budgetary Appropriations. – Such amount as may be necessary to effectively implement this Act shall be taken by the DOE from its annual appropriations, the DOE’ Special Fund created under Section 8 of Presidential Decree No. 910, as amended.

SECTION 12. Separability Clause. – If, for any reason, any section or parts of this Act is declared unconstitutional or invalid, such parts not affected thereby shall remain in full force and effect.

SECTION 13. Repealing Clause. – All laws, Presidential decrees, executive orders, issuances, rules and regulations or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or immediately modified accordingly.

SECTION 14. Effectivity. – This Act shall take effect after thirty (30) days following the completion of its publication in the Official Gazette or in two (2) national newspapers of general circulation.

Approved: ________________________