FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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SENATE 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Philippine movie industry has been struggling for its very existence in 
the face of the rising costs of production, fierce global competition and the 
burden of excessive taxation. 
Indeed, from the Golden Era of the movies during the late 40's and 50's, it 
has been observed that the industry went into a steady decline in terms of 
quality, as well as, quantity through most of the 70's and 80's. 
In the last couple of years, concerned members of the industry, after 
numerous consultations and dialogues, decided to take action. To revive and 
ensure its future, industry leaders are now seeking Congressional intervention by 
way of amendatory legislation to reduce the rates of taxes that are levied and 
collected by the national and local governments. 
At present, the movie industry shoulders about nine (9) different kinds of 
taxes, duties and fees, to wit: (1) cultural tax; (2) amusement tax; (3) withholding 
tax; (4) municipal tax; (5) value added tax; (6) excise or specific tax on positive 
prints; (7) customs duties on films; (8) corporate income tax and (9) the MTRCB 
screening fee. 
In view of this heavy burden, many doubt if the industry can 
survive in the 21 st century. 
In response to the movie industry's urgent appeal, we seek the immediate 
passage of this bill. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill N&, 
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INTRODUCED BY SEN. JINGGOY EJERC/TO ESTRADA 
AN ACT 
REVIVING THE PHILIPPINE MOVIE INDUSTRY BY PROVIDING INCENTIVES 
TO THE PROPRIETORS, LESSEES, OPERATORS OF THEATERS AND 
CINEMAS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. - Except for real property tax on land, no local and national 
taxes as prescribed under Republic Act No. 8424, also known as the "National 
Internal Revenue Code of 1997, As Amended" such as income tax, excise tax, 
value-added tax, and under Republic Act No. 7160, also known as the "Local 
Government Code of 1991" such as amusement tax, shall be imposed on 
proprietors, lessee, operators of theaters and cinemas in relation to the showing 
or exhibition of movies and films produced by the Philippine rnovie industry. 
In lieu of thereof, five percent (5%) of the gross incorne earned shall be 
paid as follows: 
1. Three percent (3%) to the national government; 
2. Two percent (2%) shall be remitted by the business establishments .to 
the treasurer's office of the municipality or city where the enterprise is 
located. 
SEC. 2. The term "Philippine Movie Industry" shall pertain to a Filipino 
citizen or juridical entity engaged in the production of movies or films. In case of 
juridical entities, Filipino ownership must be at least sixty percent (60%) to qualify 
as part of the Philippine movie industry. 
SEC. 3. The Bureau of Internal Revenue shall implement this law and 
promulgate the necessary rules and regulations within sixty (60) days from its 
effectivity. 
SEC. 4. Repealing Clause. 
- All laws, rules and regulations and orders 
inconsistent with this Act are hereby repealed. 
SEC. 5. Effectivity. - This Act shall take effect upon completion of its 
publication in at least two (2) newspapers of general circulation. 
Approved,