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Republic of the Philippines

HOUSE OF REPRESENTATIVES m
Quezon City DATE September 27, 2022 ¢)
TIME 11:52 am *
19" CONGRESS e BY Beui by
First Regular Session <5 ry,
HOUSE BILL NO. _5198 Wo INDELZ

Introduced by. REP. JUAN CARLOS “ARJO” ATAYDE

AN ACT
EXEMPTING EDUCATIONAL APPLICATIONS, GADGETS, COMPUTERS, AND
E-BOOKS FROM VALUE-ADDED TAX FOR THE PRINCIPAL USE OF
TEACHERS AND STUDENTS IN ONLINE AND DISTANCE LEARNING,
AMENDING FOR THE PURPOSE SECTION 109 (1) OF THE NATIONAL
INTERNAL REVENUE CODE OF 1997, AS AMENDED

The Constitution, Art. Il, Sec. 17 provides that “[t]he State shall give priority to
education, science and technology, arts, culture, and sports to foster patriotism and
nationalism, accelerate social progress, and promote total human liberation and
development.”

The COVID-19 pandemic has affected us in many ways. Many families lost
loved ones and many industries were affected if not obliterated by the quarantine and
lockdowns. Our education sector was not exempted.

The inability to hold classes has led to many schools being shut down. Those
that survived had to persevere using online and distance learning modes of instruction.

From the point of view of the student and their family, access to computers,
tablets, and similar gadgets for online learning are their only hope to keep up with the
ever-changing world.

Many families with limited income had to share their gadgets among their
children leading to many being severely disadvantaged in school.


This measure seeks to somehow ease the burden to the families of procuring
the gadgets necessary for e-learning and distance education, by exempting these
gadgets from value-added tax.

This is an investment for our future with the hope that, with a seemingly
Permanent adoption of e-learning and distance education as part of our education
Program, our students will be able to cope and compete with the rest of the world
despite the challenges presented by the COVID-19 pandemic.

'n view of the foregoing, the immediate passage of this measure is eamestly
sought. /

REP. JUAN GARLOS ARJO ATAYDE


PaReNna

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

19 CONGRESS
First Regular Session

HOUSE BILL NO. _5198

Introduced by. REP. ARJO ATAYDE

AN ACT
EXEMPTING EDUCATIONAL APPLICATIONS, GADGETS, COMPUTERS AND E-
BOOKS FROM VALUE-ADDED TAX FOR THE PRINCIPAL USE OF TEACHERS
AND STUDENTS IN ONLINE AND DISTANCE LEARNING, AMENDING FOR THE
PURPOSE SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE CODE
OF 1997, AS AMENDED

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

SECTION 1. Section 109 (1) of the National Internal Revenue Code of 1997,
as amended is hereby further amended to read as follows:

SEC. 109. Exempt Transactions. —

(1) Subject to the provisions of Subsection (2) hereof, the
following transactions shall be exempt from the value-added tax:

eed

“(R) Sale, importation, printing or publication of books and any
Newspaper, magazine, review or bulletin which appears at
regular intervals with fixed prices for subscription and sale and
which is not devoted principally to the publication of paid
advertisements;


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12
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15
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“(S) SALE OF E-BOOKS, E-LEARNING APPLICATIONS, GADGET
AND COMPUTERS FOR THE PRINCIPAL USE OF TEACHERS
AND STUDENTS IN ONLINE AND DISTANCE LEARNING;

“(TIS)) xxx;
“(ULT]) xxx;
oxx" and
“(CC[BB))”.

SEC. 2. Implementing Rules and Regulations. - The Secretary of Finance, shall,
upon the recommendation of the Commissioner of Internal Revenue, promulgate not
later than thirty (30) days upon the effectivity of this Act the necessary rules and
Tegulations for its effective implementation in consultation with the Department of
Education, Commission on Higher Education and other necessary stakeholders.

SEC. 3. Repealing Clause. - The provisions of other laws, decrees, executive
orders, rules and regulations inconsistent with this Act are hereby repealed, amended
or modified accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.

Approved