FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
1 
OF THE PHILIPPINES 
1 
7 Ji!!" .-3 i,\JQ:29 
S E N A T E  
~~~~~~~~~~,~ 
BY : -. 
Senate Bill No. 6 8 9 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 20 of Article II 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. ' I  
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, I999 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 
bureaucracy with respect to book publishing and provide fiscal or non-fiscal 
incentives to book publishing Industry." 
Consistent with the above-quoted 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 and/or 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 (IO) 
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 2008-2009 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 
(____3 Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
) 
OF THE PHILIPPINES 
1 
7 
,lij\. -3 PJ2(!:29 
J 
S E N A T E  
689 
Senate Bill No. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ADOPTING A RETAIL PRICE MAINTENANCE AND UNIFORM DISCOUNTING 
SCHEME IN BOOK TRADE WITH THE END IN VIEW OF ENSURING 
OTHER RELATED EDUCATIONAL MATERIALS TO BE USED BY PRIVATE 
AND PUBLIC SCHOOLS 
AFFORDABLE, ACCESSIBLE AND QUALITY-LADEN TEXTBOOKS AND 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. This Act shall be known as the “Retail Price Maintenance 
and Uniform Discounting Act of 2007.” 
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 establishment of bookstores that shall 
be situated outside the cities and provincial capitals, such bookstores in such 
localities shall be registered with the duly organized publishing association and 
accredited by the National Book Development Board (NBDB). 
3.1 Complying with the said criteria, said bookstores shall be entitled to 
a. A six-year tax holiday from the commencement of commercial 
the folowirrg: 
operations for upstart firms and a four-year tax holiday for established firms; 
corresponding to the increment in the number of direct labor hired; 
b. Deductions from taxable income for five (5) years of 50% of the wages 
c. Low interest loans with participating banks; 
d. Availment of the retail price and uniform 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 bookstores 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’ bookstores 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 Pesos (P2,000,000.00). 
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, Arts and Culture 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 I O .  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,