FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
INTRODUCED BY HON. MANNY VILLAR 
EXPLANATORY NOTE 
Media is an effective alternate vehicle to deliver educational services to the 
people. It allows Filipinos to access educational information beyond the four corners of 
the classroom and in the comfort of their homes. 
The Constitution recognizes the vital role of communication and information in 
nation-building and mandates the state to protect and promote the right of all citizens to 
quality education at all levels and to take appropriate steps to make such education 
accessible to all. 
With the potentially active and efficient role of broadcast and print media in 
disseminating educational information to the people and the presence of corporate 
sponsors who prefer to advertise in shows that have a big audience share, this bill 
grants tax incentives to educational programs and publications, together with their 
respective advertisers and sponsors. The measure hopes to alleviate the plight of the 
media industry as a whole and help it become an effective tool in the success of the 
national educational program. 
In view of the foregoing, approval of this bill is earnestly sought. 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
. . I 
Senate Bill No. 
INTRODUCED BY HON. MANNY VILLAR 
AN ACT GRANTING TAX INCENTIVES TO BROADCAST AND PRINT MEDIA 
DEVOTING AIR TIME AND SPACE TO EDUCATION, AS WELL AS, TO SPONSORS. 
SUPPORTING SUCH PROGRAMS AND FOR OTHER PURPOSES 
Be it enacted by fbe Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION I. 
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 provide air time 
and print space for educational purposes. 
SECTION 2. Coverage. - This Act shall apply to all kinds of mass media 
SECTION 3. Definition of Terms. -When used in this Act. - 
operating within the Republic of the Philippines. 
a) "Mass Media," media for brevity, refers to the means of communications which 
include both broadcast and print media directed to the public at large; 
(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 intervals, with fixed prices for subscription and 
sale and published within the Philippines: 
(d) "Commercials and Advertisements" - shall mean announcement, description, 
presentation, advertising or promotion of goods or services, in newspapers, 
magazine, television, radio and cable broadcast, etc; 
(e) "Advertisers or Sponsor" - shall mean the owner or the principal of the thing, 
product, goods or service to be advertised; and 
(9 "Educational Purposes" - includes but not limited to, educational programs, 
publications, commercials and advertisement which: 
1. give positive influence or entertainment; 
2 


2. promote social values; 
3. promote the 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 strengthening Filipino sovereignty, 
identity, national unity and integration; 
6. propagate awareness of rights and duties of citizens as enshrined in the 
constitution and in other laws of the land; and 
7. such other similar descriptions, the Secretary of Education may provide 
pursuant to the implementation of this Act. 
SECTION 4. Tax Exempt Importation - The provision of existing laws to the 
contrary notwithstanding the machinery, 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 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 said 
items shall be subject to applicable taxes: Provided, further, that such tax-exempt items 
brought or imported into the country 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 Purposes. - 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 (IO) percent of their respective 
annual income computed without the benefit of any tax incentive under existing law 
shall be tax deductible. 
Properties other than cash donated shall be valued in accordance with the rules 
SECTION 6. Program and Publicqtion - 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 which inures to the benefit of 
the producer or publisher in an amount not in excess of twenty-five (25) percent 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 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 or any equivalent government agency, endorsed by tile 
Kapisanan ng Broadkaster ng Pilipinas, Publisher's Association of the Philippines, 
Philippine Press Institute and other media organization, shall enjoy tax deduction of not 
more than ten (IO) percent of the gross operating expenses of the advertisers or 
sponsors: Provided, That these commercials and advertisements are actual delivered to 
the general public. 
SECTION 8. Airtime Rates and Cost of Space - Broadcast and Print Media shall 
give ten (IO) percent lower airtime rates and cost of space for every paid feature of 
and regulations prescribed by the Secretary of Finance. 
3 


production and publication with educational content, as approved and certified by the 
Secretary of Education or any equivalent government agency and endorsed by 
broadcast and print recognized organizations, the difference from the regular rates 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 and 
controlled corporations, are enjoined to cooperate with the private sector in order to 
achieve the objectives of this Act. 
SECTION I O .  Separability Clause - If any provision of this Act shall be declared 
unconstitutional, the provisions which are not affected thereby shall continue in force 
and effect. 
SECTION 11, Repealing Clause - Any law, act, decree, order, proclamation, 
regulation or any part hereof is inconsistent with this Act is hereby repealed and 
modified accordingly. 
SECTION 12. Effectivity Clause -This Act shall take effect upon approval. 
Approved, 
4