INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The importance of media and education in national development is 
enshrined in the following 1987 Constitutional provisions: 
“The State recognizes the vital roles of communication and 
information in nation-building.” (Article II, Section 24) 
“The State shall protect and promote the right of all citizens 
to quality education at all levels and shall take appropriate steps to 
much such education accessible to all.” (Article XIV, Section 1) 
The process of learning demands an effective avenue of knowledge 
transfer. The broadcast media and print media are always at constant contact 
with the population. Thus, they play a potentially active and efficient role in 
information dissemination, more particularly, beyond the four corners of the 
classroom. 
However, the consultations of the Congressional Commission on 
Education (EDCOM) with media reveal a very sad state that it is difficult to seek 
media’s cooperation due to their profit orientation and the need to please the 
viewing and reading public in order to stay in business. Economics has a very 
strong influence on media character. Media is practically helpless in relation to 
the forces of economics. 
Cognizant of the problem being encountered by the media industry and 
recognizing the importance of media to the present educational program, this bill 
grants tax incentives to media programs and publications, as well as to their 
respective advertisers and sponsors. It is hoped that the measures contained in 
this bill will alleviate the economic plight of the media industry as a whole and 
transform it into an effective tool towards the success of the national educational 
program. 
Media is an effective alternate vehicle to deliver educational services to 
In this context, every Filipino can be extended educational 
our population. 
services beyond the four corners of the classroom. 
earnestly sought. 
In view of the foregoing considerations, early approval of this bill is 
L 
IT0 ESTRADA 
Senator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
7 JUI. -2 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
GRANTING TAX INCENTIVES TO BROADCAST AND PRINT MEDIA 
DEVOTING AIR TIME AND SPACE TO EDUCATIONAL PROGRAMS, AND TO 
ADVERTISERS OR SPONSORS SUPPORTING SUCH PROGRAMS AND FOR 
OTHER PURPOSES 
Be if enacted by the Senafe and House of Represenfatives of fhe Philippines in 
Congress assembled: 
SECTION I, 
Declaration of Policy. It is hereby declared the policy of the 
State to recognize the vital roles of communication and information in nation 
building and shall take appropriate steps to make education accessible to all. 
Pursuant to this policy, the State shall promote, support, and provide 
incentives to broadcast and print media, as well as to sponsors or advertisers, 
who endeavor air time and space for educational purposes. 
SEC 2. 
Coverage. This Act shall apply to all kinds of mass media 
operating within the Republic of the Philippines. 
SEC 3. Definition of Terms. For the purpose of this Act, the following 
terms shall mean: 
a) Mass media - refers to the means of communication which includes 
both broadcast and print media that reach very large numbers of people; 
b) Broadcast media - refers to radio, television, cable broadcast and the 
like; 
c) Print media - refers to newspapers, magazines, reviews, bulletins and 
other publications appearing at regular interval, with fixed prices for 
subscription and sale and published within the Philippines; 
d) Commercials and advertisement - shall mean announcement, 
description presentation, advertising or promoting of something, as of 
good for sale, in newspaper, magazine, television, radio, etc.; 
e) Advertiser or sponsor - shall mean the owner or the principal of the 
thing or product to be advertised or sponsored; 


9 Education purposes - includes, but no limited to, educational 
programs, publications, commercials and advertisement which: 
1) give positive influence on entertainment; 
2) promote social values 
3) mobilize community support to, and wage information campaigns 
directed at parents to promote importance of basic education; 
4) improve the image of technical education and skills training and to 
inculcate the necessary values needed for productive employment; 
5) propagate culture, foster patriotism and nationalism and other 
values that serve as an instrument in the struggle for Filipino 
sovereignty, identify, national unity and integration; and 
6) such other similar descriptions the Secretary of Education, Culture 
and Sports may provide pursuant to the implementation of this Act. 
SEC 4. Tax Exempt Importation. The provisions of existing laws to the 
contrary notwithstanding, the machineries, equipment, tools for production, spare 
parts, supplies, materials and transportation and communication facilities to be 
used actually, directly and exclusively for educational purposes by media 
producers and publishers are not subject to duty and internal revenue tax. 
Provided, That where the National Economic and Development Authority certifies 
to the availability of the above mentioned items in the local market of sufficient 
quantity, comparable quality, and price to meet the needs of the producers and 
publishers subject to existing taxes, the importation of items shall be subject to 
existing taxes: 
Provided, further, That such tax-exempt items brought or 
imported into the Philippines are subsequently sold, transferred or exchanged in 
the Philippines to be devoted to non-educational purposes, the purchasers or 
recipients shall be considered the importer thereof, and shall be liable of the duty 
and internal revenue tax due on such importation subject to depreciation 
allowance. The tax due on such items shall constitute a lien on the article itself, 
superior to all other charges or liens, irrespective of the possessor thereof. 
SEC 5. Donations for Educational Purpose. For purposes of this Act, any 
amount paid and contributed for educational programs and publications by any 
individual or corporation which shall not exceed ten percent (10%) of their 
respective annual computed without the benefit of any tax incentives under 
existing law shall be tax deductible. 
Properties other than cash donated shall be valued in accordance with the 
rules and regulations prescribe by the Secretary of Finance in consultation with 
appropriate government agencies. 
the regulations prescribe the Secretary of Finance. 
Contributions or gifts shall be allowable as deduction only if verified under 
SEC 6. 
Program and Publicafion. The net income derived from 
educational programs and publications shall be tax-exempt for five (5) years from 
the start of its initial operation or until the producer and publisher shall have 


attained reasonable return of their investment. Thereafter, no part of the net 
income of which inures to the benefit of the producer or publisher in an amount 
not in excess of twenty five (25%) of the taxable income derived from the 
program or publication shall be allowed. The excess amount of the net income 
shall be devoted for the enhancement of the educational program and publication 
and for other educational purposes. 
SEC 7. Commercial and Advertisement. All expenses incurred in the 
production of commercials and advertisements with educational impact, 
approved by the Secretary of Education or any equivalent government agency, 
shall enjoy tax deduction of not more than ten percent (10%) of the gross 
operating expenses of the advertisers or sponsors: 
Provided, That these 
commercials and advertisements are actually delivered to the general public. 
SEC 8. Airtime Rates and Cost of Space. Broadcast media and print shall 
give ten percent (10%) lower airtime rates and cost of space for every paid 
feature of production or publication with educational content, as approved and 
certified by the Secretary of Education, Culture and Sports or any equivalent 
government agency, the difference from the regular rate shall be chargeable to 
the value-added tax accruable. 
SEC 9. 
Governmenf Cooperation. Every department, bureau, office, 
agency or instrumentality, of the government, including government-owned or 
controlled corporation, are enjoined to cooperate with private sector in order to 
achieve the objective of this Act. 
SEC 10. Separability Clause. If any provision of this Act shall be declared 
unconstitutional, the other provisions which are not affected thereby shall 
continue in force and in effect. 
SEC 11. Repealing Clause. Any law, act, decree, order, proclamation, 
regulation or any part thereof which is inconsistent with this Act is hereby 
repealed and modified accordingly. 
SEC 12. Effectivity Clause. This Act shall take effect upon approval. 
Approved,