HOUSE OF REPRESENTATIVES ;
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7436

Introduced by the Honorable Precious Hipolito Castelo

EXPLANATORY NOTE

Under Section 24 of Article Il of the Constitution, it is provided that: “The State recognizes the
Vital role of communication and information in nation building”. The COVID-19 pandemic has
heightened the relevance of this Constitutional provision. Now, more than ever, going digital
is inevitable and necessary, especially in the education sector.

The academic year was supposed to start in August 24, 2020. However, many have called for
its postponement purportedly due to lack of resources, equipment, and overall preparedness
to launch a nationwide shift to modular and online distance leaming. Thus, the official
commencement of Academic Year 2020-2021 has been moved to October 5, 2020. By then,
itis hoped that everyone is ready to take on the “big shift”.

(One major predicament of teachers, students and parents are the lack of available resources.
Electronic gadgets with the necessary specifications for studying are not affordable for
everyone. Taxes such as customs duties and Value-Added Tax (VAT) make these gadgets
more expensive.

Thus, this bill seeks to exempt electronic gadgets such as laptops, mobile phones and tablets
which will be used by students for online distance leaming from all taxes, duties, fees, and
other charges. Through this measure, itis hoped that there will be adequate supply, stabilized
prices, and prevention of hoarding of these vital commodities at the time of crisis.

The immediate passage of this bill is most eamestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7436

Introduced by the Honorable Precious Hipolito Castelo

AN ACT
EXEMPTING ELECTRONIC GADGETS TO BE USED FOR ONLINE DISTANCE
LEARNING FROM TAXES, DUTIES, FEES, AND OTHER CHARGES

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 “Electronic Gadgets for
Online Distance Learning Tax Exemption Act’.

SEC. 2. Declaration of Policy. — Itis the policy of the State to adopt an integrated and
comprehensive approach to health development which shall endeavor to make essential
personal protective goods available to all people at affordable cost. Towards this end, the
State shall exempt electronic gadgets to be used for online distance learning from all taxes,
duties, fees, and other charges.

SEC 3. Tax Exemption. — Electronic gadgets such as laptops, mobile phones, tablets
and other similar goods which will be used by students for online distance leaming are hereby
exempt from all taxes, duties, fees, and other charges.

SEC. 4. Separability Clause. — If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

SEC. 5. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

SEC. 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,