EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
S. No. 589
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JUL 17 P5 56
Introduced by Senator Grace Poe
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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
Filipinos are globally well-recognized, especially in music. Global talent shows 
have proven that Filipino singers are at par with their international counterparts.
The growing phenomenon of piracy, however, has not only affected local 
artists but also affected music producers around the world, especially in the advent 
of the Internet as music can now be easily downloaded for free.
Despite laws and state agencies dedicated to combat music piracy and protect 
copyrights, industry estimates indicate more than Phpl Billion in revenue losses due 
to piracy and other copyright violations. Furthermore, according to the United 
States-based International Intellectual Property Alliance's (IIPA) Special 301 Report 
on Copyright Protection and Enforcement 2014 submitted to the U.S. Trade 
Representative (USTR) and other U.S. government agencies, "while access to the 
Internet in the areas outside Metro Manila is still not that well-established, Internet 
penetration in the cities is growing. Internet piracy is growing along with it, through 
peer-to-peer file-sharing services, 
BitTorrent file-sharing, 
deep linking, 
blogs 
providing links to pirate materials, and cyberlockers used to store infringing material, 
to which pirates then sell passwords for illegal access." The IIPA had ranked the 
country as fifth in global and second in Asian music piracy. In 2009 alone, the 
Philippines lost around USD112.2 Million in audio CD sales.


To protect the interests of our local music producers and artists and to further 
empower them, 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.
The 15th Congress had already approved this measure on third and final 
reading, and as such, immediate approval of this bill is earnestly sought.
G R -A .C E  P O E


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S E N A T E
S. No. 589
(Pflttf o( ttjf fertT»lorj>
’19 
JIJL 17 P5 56
Introduced by Senator Grace Pod^ECc
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 o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Tide. -  This Act shall be known as the "Local Music Industry
2 
Incentives Act."
3 
Sec. 2. Declaration o f policy. -  Pursuant to the State's belief that culture is a
4 
human right and a manifestation of the freedom of belief and expression, it shall
5 
promote and protect the Filipino national culture which includes the local music
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industry. The State shall encourage and promote the creation of original Filipino
7 
music and provide support to make the industry internationally competitive. It shall
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ensure that the music industry provides cultural opportunities to all Filipinos.
9 
Sec. 3. Section 140 of Republic Act No. 7160, otherwise known as 'The Local
10 
Government Code of 1991," as amended by Republic Act No. 9640, is hereby
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amended to read as follows:
12 
"SEC. 
140. Amusement Tax. - (a) The province may levy an
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amusement tax to be collected from the proprietors, lessees or operators of
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theaters, cinemas, concert halls, circuses, boxing stadiums and other places
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of amusement at a rate of not more than ten percent (10%) of the gross
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receipts from the admissions fees.
17 
xxx


1 
(c) The holding of operas, concerts, dramas, recitals, painting and art
2 
exhibitions, 
flower 
shows, 
musical 
programs, 
literary 
and 
oratorical
3 
presentations, [ except] INCLUDING pop, rock, or similar concerts AS LONG
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AS THEY FEATURE MAINLY FILIPINO ARTISTS AND FILIPINO
5 
COMPOSITIONS shall be exempt from the payment of the tax herein
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imposed.
7  
XXX
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(e) THE PROCEEDS FROM THE AMUSEMENT TAX FROM CONCERTS
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AND 
OTHER 
MUSIC-RELATED 
PRESENTATIONS 
SHALL 
BE
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EARMARKED FOR SUBSIDIZING WORKSHOPS OF LOCAL THEATER
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MUSICALS AND/OR TRAINING AND WORKSHOPS FOR LOCAL
12 
ARTISTS AND COMPOSERS. The REMAINING proceeds [ from the
13 
amusement tax] shall be shared equally by the province and the municipality
14 
where such amusement places are located."
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Sec. 4. Implementing Rules and Regulations. -  The Department of Interior
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and Local Government (DILG), National Commission for Culture and the Arts
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(NCCA), different music industry guilds and organizations, as well as producers and
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other stakeholders shall, within sixty (60) days from the effectivity of this Act,
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promulgate the necessary rules and regulations for the effective implementation of
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this Act.
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Sec. 5. Separability Clause. -  If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provisions not affected thereby
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shall remain in force and effect.
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Sec. 6. Repealing Clause. -  Any law, presidential decree or issuance,
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executive order, letter of instruction, rule or regulation inconsistent with the
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provisions of this Act is hereby repealed or modified accordingly.
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Sec. 7. Effectivity. -  This Act shall take effect fifteen (15) days after its
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publication in two (2) newspapers of general circulation.
Approved,