MANILA, Philippines — The House of Representatives on Wednesday approved on second reading the proposed Kalinga Act, which seeks to enable a faster government response to fuel-driven inflation and other economic shocks.
House Majority Leader and Ilocos Norte 1st District Rep. Ferdinand Alexander Marcos said in a statement in Filipino and English that the bill “is about preparedness, but preparedness with compassion.”
“Under the leadership of President Ferdinand 'Bongbong' Marcos Jr. and Speaker Bojie Dy, we want government to be ready with direct, targeted and time-bound help when fuel prices begin to hurt families, workers, farmers, fisherfolk, drivers, riders and small businesses,” Rep. Marcos said.
House Bill 9305 seeks to institutionalize the Komprehensibong Alalay sa Livelihood, Inflation, Negosyo at Goods Assistance (KALINGA) program. The measure would allow the president to declare a state of national energy emergency upon the recommendation of the Kalinga National Response Council if, according to the statement, “Dubai crude oil prices reach or exceed $80 per barrel for 30 days, domestic fuel prices rise by at least 30 percent within 30 days, or national fuel inventory falls below 30 days of supply.”
“Once a national energy emergency is declared, the President may exercise limited and time-bound emergency powers to implement KALINGA interventions, including the release, realignment or augmentation of available funds for emergency relief measures, subject to constitutional, budgetary, procurement and audit rules,” the statement read.
“The bill also allows emergency procurement for fuel, energy, transport, logistics, food security, social protection and other urgent program requirements, with transparency requirements and post-audit by the Commission on Audit (COA),” it added.
Rep. Marcos said the bill was designed to prevent slow and fragmented responses.
“When the price of oil increases, it is not only gasoline stations that are affected. This bill recognizes the chain reaction on food prices, fares, electricity, livelihood, small businesses and the daily cost of living, and it gives government the tools to respond before the burden reaches Filipino families,” he said.
According to the statement, the KALINGA program would cover “low-income and near-poor households, minimum wage earners, displaced and underemployed workers, informal workers, public transport drivers and operators, delivery riders, logistics and freight service providers, commuters, farmers, fisherfolk, MSMEs, overseas Filipino workers and their families, and other vulnerable sectors.”
MSMEs refer to micro, small and medium enterprises.
“For households, the bill authorizes emergency cash transfers, food assistance, transport support, fuel-related relief, vouchers and temporary augmentation of existing social protection programs,” the statement said.
“It also provides electricity bill assistance of up to P500 through a bill deduction or credit for qualified beneficiaries whose average monthly electricity consumption exceeds 100 kilowatt-hours but does not exceed 150 kilowatt-hours,” it added.
“For agriculture and fisheries, the measure allows fuel subsidies, fuel vouchers, fuel cards, fuel discount mechanisms, fertilizer, seed, feed and crop protection support, as well as cold-chain, hauling, trucking, post-harvest, warehousing and market linkage assistance to reduce the pass-through of fuel costs to food prices,” the statement read.
“For public transport, the bill authorizes fuel subsidies, vouchers, fuel cards, direct financial assistance, fare subsidies, service contracting and other commuter support programs to protect drivers, operators and the riding public from extraordinary fuel price increases,” it added.
“The proposal also provides support for platform-based transport drivers and delivery riders through possible fuel-linked assistance, temporary commission reductions, incentive rebates and mandatory disclosure of commission rates, deductions, incentives and fuel assistance programs during the emergency period,” the statement said.
“For MSMEs and cooperatives, the measure authorizes emergency credit, concessional financing, working capital support, credit guarantees, debt relief, subsidies, vouchers, digitalization support, market access assistance and other measures to prevent closures, protect jobs and maintain the supply of essential goods and services,” it added.
The bill also includes worker protection measures such as flexible work arrangements, emergency employment, temporary wage support, cash-for-work programs, livelihood assistance, skills upgrading, reskilling, upskilling, entrepreneurship support and job matching.
In addition, the proposal authorizes the president to suspend the value-added tax, excise tax on petroleum products, or both for a limited period of up to 60 days, subject to reports to Congress on foregone revenues, inflation impact, fuel price effects, cost-benefit analysis and possible market distortions.
