REPUBLIC OF THE PHILIPPINES:
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 4517

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN IIL

EXPLANATORY NOTE

Still in an indeterminate state, the Filipino music industry agonize with piracy levels reaching
as high as 83 percent based on Philippine Association of the Record Industry (PARI). Given
the failing record industry, artists relying on live performances to make a living is just as
challenging as being confronted with the threat of foreign production and high production
cost. It is also worthy to note that producers and artists are further burdened by multiple
taxes, from Value Added-Tax (VAT) paid for services and materials and amusement tax paid
to the local government. Just as important is the fact that the International Intellectual
Property Alliance also ranked music piracy in the country, the fifth strongest in the world and
the second largest in Asia.

In light of encouraging and promoting the creation of original Filipino music and providing
support to make the industry internationally-competitive, this bill ensures that the music
industry provides cultural opportunists to all Filipinos. Under this bill, the holding of operas,
concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs,
literary and oratorical presentations, including pop rock, or similar concerts as long as they
feature mainly Filipino artists and Filipino compositions shall be exempt from the payment of
amusement tax.

Furthermore, the proceeds from amusement tax from concerts and other music related
presentation may be earmarked for subsidizing workshops of local theater musicals and/or
training and workshops for local artists and composers. The remaining proceeds shall be
shared equally by the province and the municipality where such amusement places are
located.

In view of the foregoing, immediately passage of this bill is earnestly sought.

MANUEL D& CABOCHAN II
Representative
Magdalo Para sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 4517

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

AN ACT
PROVIDING FOR TAX EXEMPTIONS AND SUBSIDIES FOR THE LOCAL MUSIC
INDUSTRY, AMENDING FOR THIS PURPOSE CERTAIN SECTIONS OF THE
LOCAL GOVERNMENT CODE OF 1991

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Actshall be known as the "Local Music Industry
Incentives Act".

SEC. 2. Declaration of Policy. - The State, in its belief that culture is a human right
and a manifestation of the freedom of belief and expression, shall promote and protect the
Filipino national culture which includes the local music industry. First and foremost, it shall
encourage and promote the creation of original Filipino music and provide support to make
the industry internationally competitive. It shall ensure that the music industry provides
cultural opportunities to all Filipinos.

SEC, 3. Section 140 of Republic Act No, 7160, otherwise known as the "Local
Government Code of 1991", as amended by Republic Act No. 9640, is hereby further
amended to read as follows:

"SEC. 140, Amusement Tax. - (a) The province may levy an amusement tax to
be collected from the proprietors, lessees, or operators of theaters, cinemas, concert
halls, circuses, boxing stadia, and other places of amusement at a rate of not more
than ten percent (10%) of the gross receipts from admission fees.

XXX

"(c) The holding of operas, concerts, dramas, recitals, painting and art
exhibitions, flower shows, musical programs, literary and oratorical presentations,
[except] INCLUDING pop, rock, or similar concerts AS LONG AS THEY
FEATURE MAINLY FILIPINO ARTISTS AND FILIPINO COMPOSITIONS shall
be exempt from the payment of the tax herein imposed.

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"(e) THE PROCEEDS FROM THE AMUSEMENT TAX FROM
CONCERTS AND OTHER MUSIC RELATED PRESENTATION MAY BE
EARMARKED FOR SUBSIDIZING WORKSHOPS OF LOCAL THEATER
MUSICALS AND/OR TRAINING AND WORKSHOPS FOR LOCAL ARTISTS


AND COMPOSERS. The REMAINING proceeds [from the amusement tax] shall be
shared equally by the province and the municipality where such amusement places are
located."

SEC. 4. The Department of the Interior and Local Government, the National
Commission for Culture and the Arts, different music industry guilds and organizations, as
well as producers and other stakeholders shall, within sixty (60) days from the effectivity of
this Act, promulgate the necessary rules and regulations for the effective implementation of
this Act.

SEC. 5. All laws, decrees, executive orders, rules and regulations or parts thereof
which are contrary to or inconsistent with this Act are hereby repealed, amended or otherwise
modified accordingly.

SEC. 6. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in at least two (2) newspapers of general circulation.

Approved,