NINETEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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23 nfiR29 P4 52
SENATE
RECEIVEO BV;
s. No. 204-S
Introduced by Senator Robinhood C. Padilla
AN ACT
AMENDING SECTION 140 (A)a (C) AND (E) OF REPUBLIC ACT NO. 7160, AS 
AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 
1991
EXPLANATORY NOTE
Film and music industries have been critical drivers of economic growth. At the 
local level, the industries have contributed to increased sources of income for local 
governments, specifically for the sectors of tourism and employment. Film and 
television tourism, for one, has spurred the growth of many economies, both 
internationally and locally. The study conducted by the Travelsat Competitive Index 
(TCI Research, 2018), in 2017 supports this, stating that 80 million tourists decided 
to travel to a destination motivated by films and TV series.
However, the COVID-19 pandemic has brought grave restrictions to the 
progress of the industries, primarily to the huge segment of freelancers. The pandemic 
and the influx of digital media have impeded the progress of our film and movie 
productions and have continuously crippled the recovery of the creative economy.
The multitude of taxation imposed on filmmakers and producers is also 
considered restrictive and burdensome to the detriment of our labor productivity, 
cultural exhibition, and local development. In fact, it has been established that none 
of the locally-produced films released in 2022 hit PIO million in gross sales. 
Considering the existing taxes, this means that the film needs to gross about 270% of 
the production cost to break even or recoup its capital investment.


In particular, it has been observed that amusement tax laws Impede the growth 
of the entertainment industry and drive up the cost of amusement services.
Hence, it Is imperative to give our film and music industries the necessary boost 
to thrive and recover from the pandemic and new challenges that cost them major 
losses while ensuring that the gains redound to local productions, thereby benefiting 
our people and economy.
This bill, hence, lowers the cap for amusement tax collection under the Local 
Government Code to five percent (5%), exempts from amusement tax all locally- 
produced creative materials which copyright Is owned by Filipinos and from local 
productions with at least ten percent (10%) equity owned by Filipinos, and, grants the 
industry a tax holiday of two years.
In view of the foregoing, the passage of the bill is earnestly sought.
ROBINHOOD PADILLA
SENATOR


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
IK;;| totals
23 HAR29 P4 52
SENATE
S. No. 2048
Introduced by Senator Robinhood C. Padilla
AN ACT
AMENDING SECTION 140 (A), (C) AND (E) OF REPUBLIC ACT NO. 7160, AS 
AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 
1991
Be it enacted by the Senate and House of Representatives of the Philippines, in 
Congress assembled:
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SECTION 1. Short Title. —This Act shall be known as the "Film and Live Events
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Recovery Act"
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SECTION 2. Declaration of Policy. — Recognizing that culture is a human right
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and a manifestation of the freedom of belief and expression, and that creative
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industries are engines for socio-economic growth and inclusion, the State shall accord
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the utmost priority to the preservation of Filipino national culture and bolster the
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development of our creative industries, including film, music, and live events. It shall
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encourage and promote the creation of original Filipino films, music, and live events,
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and provide support to make these industries internationally competitive. It shall
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ensure that these industries provide livelihood opportunities to all Filipinos working in
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these fields and cultural and creative opportunities to all local workers.
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SECTION 3. Amusement Tax. — Section 140 (a) of Republic Act No. 7160, as
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amended by Republic Act No. 9640, otherwise known as "The Local Government Code
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of 1991", is hereby amended to read as follows:
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"SECTION 140. Amusement Tax - (a) The province may levy an
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amusement tax to be collected from the proprietors, lessees, or


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operators of theaters, cinemas, concert halls, circuses, boxing stadia, 
and other places of amusement at a rate of not more than [teft 
percent-(1Q%)] FIVE PERCENT (5%) of the gross receipts from 
admission fees.
(b) In the case of theaters or cinemas, the tax shall first be deducted 
and withheld by their proprietors, lessees, or operators and paid to 
the provincial treasurer before the gross receipts are divided between 
said proprietors, lessees, or operators and the distributors of the 
cinematographic films.
(C) The holding of LOCALLY-PRODUCED FILM PRODUCTIONS, 
operas, concerts, dramas, MUSICAL PLAYS, recitals, painting and 
art exhibitions, flower shows, musical programs, literary and oratorical 
presentations [cxccpt-pep, rocky- or similar concerts] shall -be exempt 
from the payment- of-the-tax -her-efn-4mpOGGd[-]: PROVIDED, THAT 
THE COPYRIGHT OF SUCH LOCALLY-PRODUCED WORK IS 
OWNED BY FILIPINO/S AS CERTIFIED BY THE INTELLECTUAL 
PROPERTY OFFICE OF THE PHILIPPINES (IPOPHL) AND THAT 
AT LEAST TEN PERCENT (10%) OF THE EQUITY OF SUCH 
LOCAL PRODUCTIONS IS OWNED BY FILIPINOS AS 
CERTIFIED BY THE DEPARTMENT OF TRADE AND INDUSTRY 
(DTI) OR THE SECURITIES AND EXCHANGE COMMISSION 
(SEC).
(d) The sangguniang panlalawigan may prescribe the time, manner, 
terms and conditions for the payment of tax. In case of fraud or failure 
to pay the tax, the sangguniang panlalawigan may impose such 
surcharges, interest, and penalties as it may deem appropriate.


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(e) The proceeds from the amusement tax {-shall be shared equally
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by the.province and the municipality where such amusement places
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arc located.] SHALL BE ALLOCATED FOR PROGRAMS,
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ACTIVITIES, AND PROJECTS IN THE SECTORS AND
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INDUSTRIES MENTIONED IN SEC. 3(C). THE REMAINING
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PROCEEDS SHALL BE SHARED EQUALLY BY THE PROVINCE
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AND THE MUNICIPALITY WHERE SUCH AMUSEMENT PLACES
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ARE LOCATED: PROVIDED, THAT WITHIN TWO (2) YEARS
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FROM THE EFFECTIVITY OF THIS ACT, THE POWER OF THE
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LOCAL GOVERNMENTS TO LEVY AN AMUSEMENT TAX
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PURSUANT TO SECTION 140 OF REPUBLIC ACT NO. 7160, AS
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AMENDED, IS SUSPENDED WITH AN EXTENDIBLE PERIOD OF
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A MINIMUM OF TWO (2) YEARS SUBJECT TO THE APPROVAL
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OF THE DEPARTMENT OF FINANCE (DOF)."
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SECTION 4. Implementing Rules and Regulations, — Within sixty (60) days
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from the effectivity of this Act, the DOF shall, in consultation with the Department of
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Interior and Local Government, DTI, SEC, IPOPHIL, and the Union of Local
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Authorities of the Philippines, League of Provinces of the Philippines, League of Cities
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of the Philippines, League of Municipalities of the Philippines, different film music,
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and live events industry guilds and organizations, as well as producers and other
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stakeholders, promulgate the necessary rules and regulations for its effective
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implementation.
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SECTION 5. Separability Clause. — If any portion or provision of this Act is
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declared unconstitutional, the remainder of this Act or any provisions not affected
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thereby shall remain in force and effect.
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SECTION 6. Repealing Clause. — All laws, decrees, orders, issuances, rules,
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and regulations which are inconsistent with the provisions of this Act are hereby
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repealed, amended, or modified accordingly.


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SECTION 7. Effectivity Clause. —This Act shall take effect fifteen (15) days
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after publication in the Official Gazette and two (2) newspapers of national
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circulation.
Approved,