Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS 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 
EXPLANATORY NOTE 
COVID-19 brought about numerous difficulties to our learning institutions. Before 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 from 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 in 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.  
It is 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 is unhampered. This measure aims to exempt the 
sale of educational apps, e-books, and learning devices from value-added tax, 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 Parañaque City’s Second District, and for the common good of the Filipino 
people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 21, 2022
1:48 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS 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:
XXX 
"(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, GADGETS AND COMPUTERS 
FOR THE PRINCIPAL USE OF TEACHERS AND STUDENTS IN ONLINE AND 
DISTANT LEARNING;  
"(T[S]) xxx; 
"(U[T]) xxx; 
"xxx"; and 
"(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.  
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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 two (2) newspapers of general circulation. 
Approved,