Republic of the Philippines MECEIVED
HOUSE OF REPRESENTATIVES ae
Quezon City are 6 AUG 2016

SEVENTEENTH (17%) CONGRESS
First Regular Session
2665

House Bill No.

Introduced by: Representative Jose L. Atienza, Jr.

EXPLANATORY NOTE

This bill provides the horseracing industry a five-year tax holiday to
enable it to recover as the present tax on the horseracing industry is one of the
highest in Asia, even higher than that of Singapore and Hongkong.

In this way, businessmen will be encouraged to make their investments
more viable as there will be bigger prizes for race winners and placers, better
equipment for jockeys/riders, and better facilities for the hundreds of thousands
of aficionados who continue to patronize these races. Breeders will be able to
import better breeds of horses and improve the present stock. This tax holiday
will make it attractive to international players to invest in the industry, resulting
to more jobs and employment for our countrymen.

‘This will also eliminate the operation of illegal bookies as the racing clubs
will be able to give bigger dividends to bettors, making it difficult for these
bookies to compete with the legitimate racing clubs.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17°) CONGRESS
First Regular Session

2665

House Bill No.’

Introduced by: Representative Jose L. Atienza, Jr.

AN ACT PROVIDING A FIVE (5) YEAR TAX HOLIDAY FOR THE
HORSERACING INDUSTRY

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION ONE. Short Title - This Act shall be known as the “PHILIPPINE
HORSERACING TAX HOLIDAY ACT OF 2016”

SECTION TWO. - It is hereby declared a Policy of the state;
A. Under Article II Section 9, The state shall promote a just and
dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty

through policies that provide adequate social services, promote

full employment, a rising standard of living, and an improved
quality of life for all

B. Under Article II Section 20. The State recognizes the
indispensable role of the private sector, encourages private

enterprise, and provides incentives to needed investments.


SECTION THREE. Definition of Terms.

A. Horse Racing - an equestrian sport involving two or more
jockeys riding over horses over a set distance for competition.
Runners ~ a horse used for competitive horse racing
Broodmare ~ an adult female horse used for breeding

Stallion - an adult male horse used for breeding

moof

Dividend - payment made to winning wagers/bets
F, Prize ~ the money given as an award to a horse's winning -
connections. (owners, trainers, jockeys, grooms, and exercise

riders)

SECTION FOUR. ~ Itis hereby declared that no form of tax shall be.
collected to the following for five years;

‘A. Winnings or Dividends on placed wagers

B. Horse Prizes

C. Imported Horses intended for racing/breeding purposes

(broodmares and stallions included)

SECTION FIVE. - The commissioner of Bureau of Internal Revenue shall
issue instructions or promulgate rules and regulations necessary for the

implementation of this Act.
SECTION SIX, - All laws, rules, regulations, orders, circulars and
memoranda inconsistent with this act are hereby repealed, modified, and

amended accordingly.

SECTION SEVEN. Effectivity. - This act shall take effect immediately upon

approval

Approved.