FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 851 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The importance of media and education in national development is 
enshrined in the following 1967 Constitutional provisions: 
"The State recognizes the vital roles of communication 
and information in natipn-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 make 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 contract with the 
population. Thus, they playa potentially active and efficient role in information 
dissemination, more particularly, beyond the four corners of the classroom. 
However, 
the 
Congressional 
Commission 
on 
Education 
(EDCOM) 
consultations with media reveal a very sad state that 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 
in media character. 
Media is practically helpless in relation to the forces of 
economics. 
o 
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, with national thrust. 
It is hoped. that the 
measures contained in this bill will alleviate the economic plight of the media history 
as whole and shall become an effective tool in the success of the national 
educational program. 


Media is an effective alternate vehicle to deliver educational services to our 
population. In this context, every Filipino can be extended educational services 
beyond the four corners of the classroom. 
In view of the foregoing considerations, early approval of this bill is earnestly 
sought the educational programs. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 851 
) 
) 
) 
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 it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy. It is hereby declare 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; 


f) 
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, 
sparea 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 th<) 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. 
Contributions or gifts shall be allowable as deduction only if verified under 
the regulations prescribe the Secretary of Finance . 
• 
SEC. 6. 
Program and Publication. 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, Culture and Sports 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. Government 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,