PROPOSED BICAM AMENDMENTS TO HOUSE BILL (HB) NO.
10696
SB 2425 HB 10696
Section 3. Definition of Terms – x x Section 44-B. Reduction of Non-
x Environment Friendly Plastic
Products – Notwithstanding the
(y) Obliged companies shall refer to provisions of the immediately
producers, manufacturers and preceding Article, plastic product
importers as defined under Section 3 producers considered as large and
(EE) herein which are required to take medium enterprises shall, within
part in an EPR program. Obliged nine (9) months following the
companies shall not include those effectivity of the Extended Producer
under the category of micro, small, Responsibility Act of 2022,
and medium enterprises as defined establish EPR programs to reduce
under Republic Act No. 9501. their production, importation,
However, the micro, small and supply or use of plastic products.
medium enterprises are not precluded The programs under this Section
from practicing EPR voluntarily or may include the activities and
being a part of the network of obliged strategies stated under Paragraph
(A) of Section 44-A.
RECOMMENDATION
SEC. _. Section 10 of Republic Act
No. 9003 is hereby amended to read
as follows:
Section 10. Role of LGUs in Solid
Waste Management. – Pursuant to
the relevant provisions of RA 7160,
otherwise known as the Local
Government Code, the LGUs shall
be primarily responsible for the
implementation and enforcement of
the provisions of this Act within
their respective jurisdictions.
Segregation and collection of solid
waste shall be conducted at the
barangay level specifically for
biodegradable, compostable and
reusable wastes: Provided, That the
collection of non-recycle materials
and special wastes shall be the
responsibility of the municipality or
city.
PROVIDED, FURTHER, THAT
LGUS ARE AUTHORIZED TO
EMBARK ON PUBLIC-
PRIVATE PARTNERSHIP
(PPP) PROJECTS FOR THE
FINANCING,
CONSTRUCTION,
OPERATION, AND
MAINTENANCE OF WASTE
MANAGEMENT FACILITIES.
Section 44-B Reduction of Non-
Environment Friendly Plastic
Products – Notwithstanding the
provisions of the immediately
preceding Article, plastic product
producers considered as large and
medium enterprises shall, within
[nine (9) months] ONE (1) YEAR
FOR LARGE ENTERPRISES
AND THREE (3) YEARS FOR
MEDIUM ENTERPRISES
following the effectivity of [the
Extended Producer Responsibility
Act of 2022] THIS ACT, establish
EPR programs to reduce their
production, importation, supply or
use of plastic products. The
 SB 2425
companies or Producer Responsibility
Organizations practicing EPR.
HB 10696
Large enterprises under this Article
shall refer to a person whose total
assets exceed One hundred million
pesos (P100,000,000) and do not fall
under the categories of enterprises
covered by Republic Act 9501,
otherwise known as the “Magna
Carta for Micro, Small, and Medium
Enterprises (MSMEs).
RECOMMENDATION
programs under this Section may
include the activities and strategies
stated under Paragraph (A) of
Section 44-A.
[Large enterprises under this Article
shall refer to a person whose total
assets exceed One hundred million
pesos (P100,000,000) and do not fall
under the categories of enterprises
covered by Republic Act 9501,
otherwise known as the “Magna
Carta for Micro, Small, and Medium
Enterprises (MSMEs).]

LARGE AND MEDIUM

ENTERPRISES UNDER THIS
SECTION SHALL REFER TO
LARGE AND MEDIUM
TAXPAYERS,
RESPECTIVELY, AS DEFINED
BY THE BUREAU OF
INTERNAL REVENUE (BIR)
UNDER RELEVANT REVENUE
ISSUANCES.

SEC. 7. Section 45 of Republic Act SEC. 7. Section 45 of Republic Act SEC. 7. Section 45 of Republic Act
No. 9003 is hereby amended to read as No. 9003 is hereby amended to read No. 9003 is hereby amended to read
follows: as follows: as follows:

Section 7. Incentives. – “Sec. 45. Incentives. – Sec. 45. Incentives. –

(a) Rewards and recognitions, (a) Rewards and recognitions, (a) Rewards and recognitions,
monetary or otherwise, shall be monetary or otherwise, shall be monetary or otherwise, shall be
provided to individuals, private provided to individuals, private provided to individuals, private
organizations, entities, obliged organizations, entities, obliged organizations, entities, obliged
companies, and Producer producers, and PROs, including producers, and PROs, including
Responsibility Organizations, nongovernment organizations, nongovernment organizations,
including nongovernment that have undertaken that have undertaken
organizations, that have outstanding and innovative outstanding and innovative
undertaken outstanding and projects, technologies, projects, technologies,
innovative projects, technologies, processes and techniques or processes and techniques or
processes and techniques or activities in re-use, recycling activities in re-use, recycling
activities in re-use, recycling and and reduction. Said rewards and reduction. Said rewards
reduction. Said rewards shall be shall be sourced from the Fund shall be sourced from the Fund
sourced from the Fund herein herein created. herein created.
created.

(b) x x x (b) x x x (b) AN INCENTIVE

SCHEME IS HEREBY
(1) x x x (1) x x x PROVIDED FOR THE
(a) x x x (a) Tax and Duty PURPOSE OF
Exemption on ENCOURAGING
(i) xxx Imported Capital LGUS, ENTERPRISES,
 SB 2425 HB 10696 RECOMMENDATION
(ii) xxx Equipment and OR PRIVATE
(iii) xxx Vehicles – Within ten ENTITIES,
(10) years upon INCLUDING OBLIGED
(b) x x x effectivity of the PRODUCERS, PROS,
Extended Producer AND NGOS, TO
(c) x x x Responsibility Act of UNDERTAKE A SOLID
2022, LGUs, WASTE
(2) x x x enterprises or private MANAGEMENT AND
entities shall enjoy tax RECOVERY
(3) x x x and duty free PROGRAM, AND
importation of DIVERSION OF
(4) x x x machinery, PLASTIC PRODUCT
equipment, vehicles FOOTPRINT, OR
(5) x x x and spare parts used PARTICIPATE IN ANY
for collection, PROGRAM GEARED
transportation, TOWARDS THE
segregation, recycling, PROMOTION
re-use, composting, THEREOF AS
and resource recovery PROVIDED FOR IN
of solid wastes: THIS ACT.
Provided, That the
importation of such (1) Fiscal Incentives –
machinery, [(a)Tax and Duty
equipment, vehicle Exemption on
and spare parts shall Imported Capital
comply with the Equipment and
following conditions: Vehicles – Within ten
(10) years upon
(i) xxx effectivity of the
(ii) xxx Extended Producer
(iii) xxx Responsibility Act of
2022, LGUs,
(b) x x x enterprises or private
entities shall enjoy tax
(c) x x x and duty free
importation of
(2) x x x machinery, equipment,
vehicles and spare parts
(3) x x x used for collection,
transportation,
(4) x x x segregation, recycling,
re-use, composting,
(5) x x x and resource recovery
of solid wastes:
(6) Incentives for Obliged (6) Incentives for Obliged Provided, That the
Companies Doing EPR. – Producers Implementing importation of such
Registered EPR Programs. machinery, equipment,
(6.1) Any provision of law to the – vehicle and spare parts
contrary notwithstanding, shall comply with the
obliged producers and (6.1) Tax and Duty Exemption following conditions:
PROs, acting for and on on Imported Capital
behalf of obliged producers, Equipment under EPR. — (i) x x x
may apply for incentives Within ten (10) years upon (ii) x x x
provided under Title XIII effectivity of the Extended (iii) x x x]
(Tax Incentives) of the Producer Responsibility
 SB 2425 HB 10696 RECOMMENDATION
National Internal Revenue Act of 2022, obliged (A) TAX INCENTIVES –
Code of 1997, as amended, producers and PROs, ANY PROVISION OF
for eligible activities: acting for and on behalf of LAW TO THE
Provided, that such activity obliged producers, shall CONTRARY
shall undergo the standard enjoy tax and duty-free NOTWITHSTANDING,
processes in the importation of machinery, OBLIGED
identification of qualified equipment, vehicles and PRODUCERS AND
activities under the Strategic spare parts used for PROS ACTING FOR
Investment Priorities Plan collection, transportation, AND ON BEHALF OF
(SIPP). segregation, recycling, re- OBLIGED
use, composting of solid PRODUCERS, MAY
(6.1) The EPR expenses of wastes, resource recovery APPLY FOR
obliged companies shall be and other activities INCENTIVES
subject to the substantiation considered as part of an FOLLOWING THE
requirements for necessary EPR program: Provided, APPROVAL PROCESS
business expenses that the importation of such PROVIDED UNDER
deductible from gross annual machinery, equipment, TITLE XIII (TAX
income in accordance with vehicle or spare part, shall INCENTIVES) OF THE
Section 34 A (1) of the comply with conditions NATIONAL INTERNAL
National Internal Revenue setforth under sub- REVENUE CODE OF
Code of 1997, as amended. paragraphs of paragraph 1997, AS AMENDED,
(a) of this Section. FOR ELIGIBLE
Provided, further, that the ACTIVITIES:
President of the PROVIDED, THAT
Philippines may extend the SUCH ACTIVITIES
period of exemption for SHALL UNDERGO
another five (5) years: THE STANDARD
Provided, finally, that the PROCESS IN THE
sale, transfer or disposition IDENTIFICATION OF
of such machinery, QUALIFIED
equipment, vehicle or ACTIVITIES UNDER
spare part, without prior THE STRATEGIC
approval of the DTI-BOI, INVESTMENT
within five (5) years from PRIORITIES PLAN
the date of acquisition, (SIPP).
shall be prohibited;
otherwise, the obliged (B) ENHANCED
producers and PROs, and DEDUCTIONS FROM
the vendee, transferee or GROSS INCOME – ALL
assignee, shall be solidarily EXPENSES PAID OR
liable for the payment of INCURRED DURING
twice the amount of tax THE TAXABLE YEAR
and duty exemption RELEVANT TO THE
granted to it.” RECOVERY AND
DIVERSION OF
PLASTIC PRODUCT
FOOTPRINT SHALL
BE ALLOWED AS
DEDUCTIONS FROM
GROSS INCOME:
PROVIDED, THAT
OBLIGED
PRODUCERS, PROS
AND PRIVATE
ENTERPRISES WHO
SB 2425 HB 10696 RECOMMENDATION
EXCEEDED THE
TARGETS FOR THE
RECOVERY OF
PLASTIC PRODUCT
FOOTPRINT SET
FORTH UNDER
SECTION 44-C OF THIS
ACT SHALL BE
ENTITLED TO AN
ADDITIONAL
DEDUCTION OF FIFTY
PERCENT (50%) FROM
THE GROSS INCOME
WITHIN THE FIRST
TEN (10) YEARS OF
THIS ACT.

(c) Tax and Duty Exemption

of Donations, Legacies
and Gift – x x x