Fourteenth Cougress of the 
1 
Republic of the Philippines 
) 
First Regular Session 
) 
S. No. 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NQTE 
It is imperative for the State to promote and support the development and growth 
of the theater and local film industry as a medium for the dissemination of aesthetic, 
cultural and social values for the better understanding and appreciation of the Filipino 
identity. 
Theaters and or movie houses are the primary media through which the output or 
artistic creation of the local film industry is exhibited. However, the viability of the 
cinema theater industry is now under threat due to continuous operational losses brought 
mainly by two reasons: (1) low patronage and (2) high taxation regime. 
Both theater owners and local movie producers are greatly prejudiced by cheaper 
home movie altei-natives like TV and cable programs, as well as by rampant film piracy 
which turns out inexpensive and untaxed films in CD or DVD formats. This severely 
undercuts the cost of movie tickets at present. 
Currently, the entire movie industry is now suffering from the collection of two 
business taxes, each imposed by the national government and local government units on 
ticket sales. 
The local government units collect an amusement tax on admission to theaters to 
t.he top rate of 30% of its gross receipts. With the passage of Republic Act No, 9337, the 
Bureau of Internal Revenue has imposed a hrther tax of 10% on the same gross receipts 
by way of VAT. 
Such an application of both taxes will result to the imposition of a total top rate of 
40% business taxes (30% local and 10% national) on gross receipts which under the 
circumstances is unjust, oppressive and confiscatory. The foregoing tax imposition, 
which is inconsistent with the State’s policy to have a viable, sustainable and competitive 
theater and film industry, will surely lead to the demise of the industry. 
In order to alleviate the hardships of the industry, there must be a commensurate 
lowering of the tax burden being imposed. This bill proposes to put 
a ceiling of ten percent (10%) on the amusement tax rate currently being levied on the 
industry. This may be the last chance and maybe the only hope of a dying industxy. 
The delay in the passage of this bill may be the final nail in the coffin of a once 
proud and flourishing industry. 


Fourteenth Congress of the 
) 
Republic of the Philippines 
1 
First Regular Session 
1 
S. NO. 7.9 7 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
AMENDING SECTION ONE HUNDRED FORTY OF REPUBLIC ACT 
7160, OTHERWISE IUVOWN AS THE “LOCAL GOVERNMENT CODE 
OF 1991” AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress, 
assembled. 
SECTION I .  Section 140 of Republic Act No. 7160, otherwise known as the “Local 
Government Code of 1991” is hereby 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 thirty percent (30%) of 
the gross receipts from admission fees: PROVIDED THAT, IN THE 
CASE OF PROPRIETORS, LESSEES, OR OPERATORS OF 
THEATERS AND CINEMAS THE AMUSEMENT TAX TO BE 
COLLECTED SHALL NOT BE OF TICKET SALES.” MORE THAN 
TEN PERCENT (10%) OF THE GROSS RECEIPTS 
“X x x” 
Sec. 2. Repealing Clause. - Any laws, decrees, ordinances or rules and regulations which 
are inconsistent with or contrary to the provision of this Act is hereby repealed or 
modified. 
Sec. 3 .  Effectivity. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation, whichever comes earlier. 
Approved,