Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House BILL No. 8682

Introduced by HON. JOY MYRA S. TAMBUNTING

AN ACT
PROVIDING FOR TAX EXEMPTIONS AND SUBSIDIES FOR THE LOCAL MUSIC
INDUSTRY AND AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 7160 OR
THE LOCAL GOVERNMENT CODE OF 1991

EXPLANATORY NOTE

Philippines is home to numerous talents who have been recognized in the field of music and
performing arts globally. The local music industry however is burdened by numerous problems
which hamper its development. The most rampant is the piracy in the music industry, with
revenue losses due to piracy and other copyright violations reported to be at an estimated amount
of PhP 1 Billion, As music piracy largely affects records sales in the Philippines, those in the
industry are left to rely on live shows to make a living, This however is burdened with high
production costs and various taxes.

To protect the interests of our local music producers and artists and to further empower local
music producers and artists, this bill aims to exempt local artists promoting original Filipino music
from the payment of amusement tax. Time and again, local music producers and artists complain
of high amusement tax as one of the reasons of marginal earnings in concerts.

Further, under this proposed measure, amusement tax derived from concerts of foreign artists
will be earmarked for workshop subsidies needed by our local theater groups; as well as for
training programs and workshops for artists and composers to encourage the creation of original
Filipino music.

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.

REP/JO| s. L faba
id) District, Parafiaque mi


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS:
Second Regular Session

HOUsE BILL No, 8682

Introduced by HON. JOY MYRA S. TAMBUNTING

AN ACT
PROVIDING FOR TAX EXEMPTIONS AND SUBSIDIES FOR THE LOCAL MUSIC
INDUSTRY AND AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 7160 OR
THE LOCAL GOVERNMENT CODE OF 1991

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 "Local Music Industry Incentives Act."

Sec. 2. Declaration of policy. ~ Pursuant to the State's belief that culture is a human right and
‘a manifestation of the freedom of belief and expression, it shall promote and protect the Filipino
national culture which includes the local music industry. The State shall encourage and promote
the creation of original Filipino music and provide support to make the industry internationally
competitive. It shall ensure that the music industry provides cultural opportunities to all Filipinos.

Sec. 3. Section 140 of Republic Act No. 7160, otherwise known as “The Local Government
Code of 1991,” as amended by Republic Act No, 9640, is hereby amended to read as follows:

“SEC. 140. Amusement Tax. - (a) The province may levy an amusement tax to be
collected from the proprietors, lessees or operators of theaters, cinemas, concert halls,
circuses, boxing stadiums and other places of amusement at a rate of not more than ten
percent (10%) of the gross receipts from the admissions fees.

XXX

(0) The holding of operas, concerts, dramas, recitals, painting and art exhibitions, flower
shows, musical programs, literary and oratorical presentations, [exeept] INCLUDING
pop, rock, or similar concerts AS LONG AS THEY FEATURE MAINLY FILIPINO
ARTISTS AND FILIPINO COMPOSITIONS shall be exempt from the payment of the
tax herein imposed.

XXX


(¢) THE PROCEEDS FROM THE AMUSEMENT TAX FROM CONCERTS AND OTHER
MUSIC-RELATED PRESENTATIONS SHALL BE EARMARKED FOR SUBSIDIZING
WORKSHOPS OF LOCAL THEATER MUSICALS AND/OR TRAINING AND
WORKSHOPS FOR LOCAL ARTISTS AND COMPOSERS. The REMAINING proceeds
[fror-the-amusement-tex] shall be shared equally by the province and the municipality
Where such amusement places are located.”

Sec. 4. Implementing Rules and Regulations. — The Department of Interior and Local
Government (DILG), National Commission for Culture and the Arts (NCCA), different music
industry guilds and organizations, as well as producers and other stakeholders shall, within sixty
(60) days from the effectivity of this Act, promulgate the necessary rules and regulations for the
effective implementation of this Act.

Sec. 5. Separability Clause.— If any portion or provision of this Act is declared unconstitutional,
the remainder of this Act or any provisions not affected thereby shall remain in force and effect.

Sec. 6. Repealing Clause. — Any law, presidential decree or issuance, executive order, letter of
instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or
modified accordingly.

Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in two (2)
newspapers of general circulation.

Approved,