EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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)
)
S E N A T E
S. No. 889
S
'I), 
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'19 A'JS 13 A 9:22
Introduced by SENATOR RAMON BONG REVILLA, JR.
(Irr ..
AN ACT
REVIVING THE PHILIPPINE MOVIE INDUSTRY BY PROVIDING INCENTIVES 
TO THE PROPRIETORS, LESSEES, OPERATORS OF THEATERS AND CINEMAS
EXPLANATORY NOTE
In the recent years, the evolving technology completely changed the movie film 
industry. The competition with online websites providing their own movies and shows 
to watch comfortably in one's home caused the movie industry a lot of possible 
earnings. There is also no doubt that the industry went into a steady decline in terms 
of quality, as well as, quantity. 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.
The Philippines is one of Southeast Asia's most prolific film-producing nations, 
turning out about 70-80 movies a year and, occasionally, winning an award or two at 
one of the leading international film festivals.1 However, the commercial environment 
in our own country's market is far from ideal. In 2017, Philippine films had a 29% 
share of their domestic box office, which is more or less in line with many other 
Southeast Asian territories, but way lower than the 50% or more market share enjoyed 
by local films in mainland China, South Korea or Japan.1 Like in many Southeast Asian 
countries, low-budget local productions find it difficult to compete with Hollywood 
blockbusters. Unfortunately, the Philippine Movie Industry experiences rampant piracy
1Filipino Film Industry Ponders Funding Problems and Cinema Shortfall, Retrieved from: "http://economists- 
pick-research.hktdc.com/business-news/article/lnternational-Market-News/Filipino-Film-lndustry-Ponders- 
Funding-Problems-and-Cinema-Shortfall/imn/en/l/lX000000/lX0AF27N.htm"


as well as the lack of a strong home entertainment market, making it more difficult 
for local Filipino producers to recoup their costs.
With the continuous decline of the Philippine Movie Industry during 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.
This bill may be overly ambitious and this representation may be tagged for 
conflict of interest because I am part of this industry; but I am still putting this issue 
forward for possible debate and interpellation and for further study and scrutiny of my 
colleagues.
In view of the foregoing, the passage of this bill into law is earnestly sought.
R A M ^  BONG REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E  
S. No. 889
1.
'19
13 A 9 22
Introduced by SENATOR RAMON BONG REVILLA, JR.
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 o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "The Revival of the
2 
Philippine Movie Industry Act 2019."
3 
Sec. 2. Declaration o f Policy. -  Except for real property tax on land, no local
4 
and national taxes as prescribed under Republic Act No. 8424, also known as the
5 
"National Internal Revenue Code of 1997, As Amended" such as income tax, excise
6 
tax, value added tax and under Republic Act No. 7160, also known as the "Local
7 
Government Code of 1991" such as amusement tax, shall be imposed on proprietors,
8 
lessee, operators of theaters and cinemas in relation to the showing or exhibition of
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movies and films produced by the Philippine movie industry.
10 
In lieu thereof, five percent (5%) of the gross income earned shall be paid as
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follows:
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1. Three percent (3%) to the national government;
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2. Two percent (2%) shall be remitted by the business establishments to
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the treasurer's office of the municipality or city where the enterprise is
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located.
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Sec. 3. Definition o f terms. -  The term "Philippine Movie Industry" shall pertain
17 
to a Filipino citizen or juridical entity engaged in the production of movies or films. In


1 
case of juridical entities, Filipino ownership must be at least sixty percent (60%) to
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qualify as part of the Philippine movie industry.
3 
Sec. 4. Implementation. -  The term "Philippine Movie Industry" shall pertain to
4 
a Filipino citizen or juridical entity engaged in the production of movies or films. In
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case of juridical entities, Filipino ownership must be at least sixty percent (60%) to
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qualify as part of the Philippine movie industry.
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Sec. 5. Separability Clause. -  If any provision of this Act is declared
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unconstitutional or invalid, the provisions not affected thereby shall continue to be in
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full force and effect.
10 
Sec. 6. Repealing Clause. — All laws, republic acts, presidential decrees, orders,
11 
rules and regulations or other issuance of government agencies inconsistent with the
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provisions of this Act are hereby repealed, amended or modified accordingly.
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Sec. 7. Effectivity Clause. — This Act shall take effect fifteen days after its
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publication in the Official Gazette.
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Approved,