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THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHlLtPPlNES 
1 
First Regular Session 
1 
S.B. No. 963 
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 
role of 
communication and 
I 
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 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 contact 
with the population. Thus, they play a potentially active and efficient role in 
information dissemination, more particularly, beyond the four corners of the 
1 
1 
I 
classroom. 
1 
I 
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 ofientation 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. 
Cognizant of the problem being encountered by the media Industry and 
recognizing recognizing the importance 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 industry 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 
In this context, every Filipino can be extended educational services 
population. 
beyond the four corners of the classroom. 
In view of the foregoing considerations, early approval of this bill is 
earnestly sought .the educational programs. 
(.,- 
J Senator 


THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
963 
S.B. No. 
1 
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 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. 
SECTION 2. Coverage. - This Act shall apply to all kinds of mass media 
operating within the Republic of the Philippines. 
SECTION 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; 


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; 
Commercials 
and 
advertisement - 
shall 
mean 
announcement] 
description presentation, advertising or promoting of something] as of 
good for sale, in newspaper, magazine] television, radio, etc. ; 
Advertiser or sponsor - shall mean the owner or the principal of the 
thing or product to be advertised or sponsored; 
Educational purposes - includes, but no limited to, educational 
programs, publications, commercials and advertisement which: 
I) 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, identity, 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 
SECTION 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. 
SECTION 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 by the Secretary of Finance. 
Contributions or gifts shall be allowable as deduction only if verified under 
SECTION 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 educatidnal program and publication 
and for other educational purposes. 
SECTION 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. 
SECTION 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. 
SECTION 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. 
SECTION I O .  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. 
SECTION 1 I. 
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. 
SECTION 12. Eflecfivify Clause. - This Act shall take effect upon approval. 
Approved,