THIRTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
S E N A T E  
d' 
Introduced by Senator Luisa "Loi" P. Ejercito Estrada 
EXPLANATORY NOTE 
Section 20 of Article I1 of the 1987 Constitution mandates that: "The State 
recognizes the indispensable role of the private sector, encourages private enterprises, 
and provides incentives to needed investments." 
True to his administration's program of increasing the literacy rate of the Filipinos 
especially the poorest of the poor, President Joseph Ejercito Estrada has signed on July 4, 
1999 an Executive Order adopting the National Book Policy (NBP). Under said NBP all 
government policies towards the growth and development of the book publishing 
industry have been institutionalized. In order to ensure the effective, sustained and 
successful implementation of the NBP, the National Book Development Board (NBDB) 
is tasked to implement the said policies. Under the present administration, the NBP is still 
enforceable and implementable. 
Among the policies enunciated therein is that: "The State shall support the 
development of 
the book publishing in all regions of the country, streamline the 
burenucrncy with respect to book publishing and provide fiscal or non-fiscal incentives to 
book publishing industry. I' 
Consistent with the abovequoted policy, there is an imperative need to outline 
said incentives in order to ensure the affordability, accessibility and quality of the 
textbooks and related educational materials as well as to be transparent in all transactions 
concerning the same. 
There is no doubt that until today, there are no clear guidelines or incentives on 
book trade transactions. Said lack of clear guidelines is manifested in the textbook 
scandal which hit the media brought about by the Maslog incident. Based on news report, 
"under the table considerations andor exorbitant discounts," serve as the criteria for. the 
purchase of books, textbooks and other reading materials instead of the merits and quality 
thereof. 
Consistent with the NBP, this bill seeks to adopt the Retail Price Maintenance and 
Uniform Discounting Scheme. It is hoped that with the enactment of the bill, the 
government could ensure for our children affordable, accessible and quality-laden 
textbooks and related educational materials. 
The bill provides for a uniform discount scheme of not lower than ten (10) percent 
but not more than twenty five (25) percent to bookstores or private educational 
institutions. 


Records show that Japan, South Korea, Germany and other progressive countries 
have been adopting the Retail Price Maintenance and Uniform Discounting Scheme. 
Under the said scheme the publisher shall maintain the retail prices of their prices of their 
products everywhere while giving a uniform discount to bookstores. 
Considering that school year 2005-2006 is fast approaching and the students and 
parents are purchasing books, regulation on the discounting scheme is necessary if not 
imperative. 
In view of the foregoing the immediate enactment of the bill is earnestly sought 
LUISA “LOI” P.~JERCITO ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
1 
Introduced by Senator Luisa ‘‘Lo?’ P. Ejercito Estrada 
AN ACT 
ADOPTING A RETAIL PRICE MAINTENANCE AND UNIFORM DISCOUNTING 
SCHEME IN BOOK TRADE WITH THE END fh‘ ‘ VIEW OF ENSURING 
AFFORDABLE, ACCESSIBLE AND QUALITY-LADEN TEXTBOOKS AND 
OTHER RELATED EDUCATIONAL MATERIALS TO BE USED BY PRIVATE 
AND PUBLIC SCHOOLS 
Be it eizncted by the Senate and the House of Representatives of the Philippines 
Corigress nssenzbled: 
SECTION 1. This Act shall be known as the “Retail Price Mairzlenaizce and 
Unifoiin Discounting Act of 2005”. 
SEC. 2. It is declared a policy of the State to support the development of the book 
publishing industry in all regions of the country and to provide fiscal and non-fiscal 
incentives to book publishing industry. 
SEC. 3. In order to encourage the establislxnent of bookstores that shall be 
situated outside the cities aid provincial capitals, such bookstores in such localities sliall 
be registered with the duly organized publishing association and accredited by the 
National Book Developinent Board (NBDB). 
3.1 Complying with the said criteria, said bookstores shall be entitled to the 
following: 
a. A six-year tax holiday from the commencement of coinniercial 
operations for upstart fimis and a four-year tax holiday for established 
firms; 
b. Deductions from taxable income €or five years of 50% of the wages 
corresponding to the increment in the number of direct labor hired; 
c. Low interest loans with paticipating banks; 
d. Availmeiit of the retail price and unifonn discounting scheme 
SEC. 4. There is hereby adopted a retail price maintenance and uniform 
discounting scheme in the procurement of textbooks and related educational materials 
used in private and public schools. The uniform discount scheme shall be not lower than 
ten (10%) percent but not more than twenty-five (25%) percent to be given by the 
publishers only to booltstores accredited and registered with the duly organized 
publishing association and registered with the NBDB irrespective of their location. 
SEC. 5. The uniform discount scheme of not lower than ten (10%) percent but not 
higher than twenty-five (25%) percent shall also be given by publishing association or its 
educational agent or material consultant to private educational institutions, schools’ 


boolcstores or to private book coordinators or subject coordinators. Likewise, it is 
prohibited to provide such other consideration aside from the discount such as loan 
facilities, motor vehicles, travel abroad, accommodation and the likes. 
SEC. 6. A declared retail price shall be forwarded by the duly organized and 
accredited publishing association to the NBDB and be observed nationwide. Said price 
can only be altered or changed upon a formal pronouncement by the publisher concerned 
and that the same must be forwarded to the NBDB to have efficacy. 
SEC. 7. Any persons who violate any provisions of this Act shall in addition to 
the penalties imposed under R.A. No. 8047 and the Executive Order adopting the 
National Book Policy shall suffer the imprisonment of four (4) years to six (6) years and 
a fine of Two Million (P 2M) Pesos. In case of juridical person, the president, chief 
executive officer or chief operating officer shall be held liable. 
SEC. 8. The NBDB in consultation with the Department of Education (DepEd), 
and the other appropriate agencies from the government sectors with the active 
participation of the private sector shall promulgate the implementing rules and 
regulations within sixty (60) days from the enactment of this Act. A copy of such 
guidelines, rules and regulations shall be furnished to the Congress of the Philippines 
through the Committee on Education, Culture and Arts of both houses. 
SEC. 9. If any provision of this Act or the application of such provision to any 
person or circumstances is declared unconstitutional, the remainder of the Act or the 
application of such provision to other provision, to other person, entity or circumstances 
shall not be affected by such declaration. 
SEC. 10. All laws, decrees, rules and regulations and other administrative 
issuances or circulars or provisions therefore which are contrary to or inconsistent 
herewith are hereby repealed or modified accordingly. 
SEC. 11. This Act shall take effect fifty (15) days from the date of its publication 
in the Official Gazette or in any newspaper or general circulation. 
Approved,