Republic of the Philippines

HOUSE OF REPRESENTATIVES bei TIME: #20" oe

Quezon City ———)
EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _7943

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

The COVID-19 brought about numerous difficulties to our learning institutions. Prior to the
implementation of blended learning (which is a fusion of “online distant learning or e-learning”
and “in-person” delivery of learning modules and interactive facilities to the homes of the
students), educators and students barely manage to work around the many shortcomings of the
system such as the inadequate learning materials and facilities, grossly oversized classes, among
others. However, with the shift to blended learning due to the pandemic, educators and students
bear more burden as online distant learning necessitates more resources—not only from the
institution's end, but on the teachers’ and students’ ends. Teachers are required to have a laptop
‘or desktop so that they may be able to hold synchronous classes and prepare digital educational
materials for students. As for students, they will need a device to attend classes and participate
to activities. Whilst learning institutions addressed the issue of students not having a device to
access online classes by allowing them to self-study learning modules, it is a fact that without a
device (and consequently the guidance of a teacher) the quality of learning decreases.

Truly, the efforts of the Department of Education, Commission on Higher Education and learning
institutions to provide for the continued learning of students despite the pandemic are laudable.
However, the inaccessibility of quality education remains to be a problem, especially for students
from poor families who will have to fend for their own as they do not have access to essential
tools and technologies for learning.

Itis then the responsibility of the State to ensure that technologies essential for quality learning
are made more accessible to ensure that the education of students are unhampered. This
measure aims to exempt sale of educational apps, e-books and learning devices from value-added
tax, so as to significantly reduce the prices of these and make these essential tools for learning
more obtainable for students from poor families.

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7943

Introduced by HON. JOY MYRA S. TAMBUNTING

AN ACT
EXEMPTING EDUCATIONAL APPLICATIONS, GADGETS, COMPUTERS AND E-BOOKS
FROM VALUE-ADDED TAX FOR THE PRINCIPAL USE OF TEACHERS AND STUDENTS
IN ONLINE AND DISTANT LEARNING, AMENDING FOR THE PURPOSE SECTION 109
(1) OF 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. Section 109 (1) of the National Internal Revenue Code of 1997, as 2 amended, is
hereby further amended to read as follows:

SEC. 109. Exempt Transactions, —

(1) Subject to the provisions of Subsection (2) hereof, the following transactions
shall be exempt from the value-added tax:

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"(R) Sale, importation, printing or publication of books and any newspaper,
magazine, review or bulletin which appears at regular intervals with fixed prices for
subscription and sale and which is not devoted principally to the publication of paid
advertisements;

"(S) SALE OF E-BOOKS, E-LEARNING APPLICATIONS, GADGET AND
COMPUTERS FOR THE PRINCIPAL USE OF TEACHERS AND STUDENTS IN
ONLINE AND DISTANT LEARNING;

"(TLS]) .00;

"(ULT]) »00x;

“(CC[BB])".


Sec. 2. Implementing Rules and Regulations. —- The Secretary of Finance, upon the
recommendation of the Commissioner of Internal Revenue, shall promulgate not later than thirty
(30) days upon the effectivity of this Act the necessary rules and regulations for its effective
implementation, in consultation with the Department of Education, Commission on Higher
Education and other necessary stakeholders.

Sec. 3, Repealing Clause. — All laws, decrees, letters of instruction, resolutions, orders or parts
thereof which are inconsistent with the provisions of this Act are hereby repealed, modified or
amended accordingly.

Sec. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) newspapers of general circulation.

Approved,