NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1252
of nje g?; rrftarp
'22 AUG 31 P4 -59
Rl'CEIVcO B\;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
EXEMPTING THE PHILIPPINE FILM AND MOVIE INDUSTRY FROM THE 
PAYMENT OF CERTAIN TAXES, AMENDING FOR THE PURPOSE CERTAIN
PROVISIONS OF THE R.A. NO. 8424 OTHERWISE KNOWN AS THE
"NATIONAL INTERNAL REVENUE CODE OF THE PHILIPPINES," AS 
AMENDED, AND R.A. NO. 10863 OTHERWISE KNOWN AS THE "CUSTOMS
MODERNIZATION AND TARIFF ACT", AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 17 of the 1987 Philippine Constitution provides that, "the State 
give priority to education, science and technoiogy, arts, culture, and sports to foster 
patriotism and nationalism, accelerate social progress, and promote total human 
liberation and development"
Film is a powerful instrument to propagate the country's image and 
distinctiveness locally and internationally. The production of Filipino films introduce who 
we are to the world - our country, cultural diversity, and history. However, due to the 
COVID-19 pandemic, the Philippine Film and Movie industry suffered substantial 
revenue losses that contributed to the continued weakening of the industry.
This bill proposes to exempt from value-added tax and customs duties the 
importation of film materials and equipment by Local Film Production companies in 
order to help the industry recover from the impacts of the pandemic.
It is high time that the State recognize the potential of the Film and Movie 
industry as a key driver in promoting the Filipino culture and increasing economic


development by attracting investments, creating new jobs for Filipinos, and stimulating 
local economy through tourism and consumer purchases.
For the foregoing reasons, the passage of this bill is earnestly sought.
' h-
ARCOS


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 1 252
^eu.Tf
Of SI).'
*22 AUG 31 P 4 ’59
Rl'CEiVLD Bx. .
Introduced by SENATOR IMEE R. MARCOS
AN ACT
EXEMPTING THE PHILIPPINE FILM AND MOVIE INDUSTRY FROM THE 
PAYMENT OF CERTAIN TAXES, AMENDING FOR THE PURPOSE CERTAIN 
PROVISIONS OF THE R.A. NO. 8424 OTHERWISE KNOWN AS THE 
"NATIONAL INTERNAL REVENUE CODE OF THE PHILIPPINES," AS 
AMENDED, AND R.A. NO. 10863 OTHERWISE KNOWN AS THE "CUSTOMS 
MODERNIZATION AND TARIFF ACT", AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in Congress 
assembled:
SECTION 1. Exemption from Value-Added Tax. - Section 109 of the National 
Internal Revenue Code, as amended, is hereby further amended to read as follows:
"Section 109. Exempt Transactions. - (1) Subject to the provisions of 
Subsection (2) hereof, the following transactions shall be exempt from 
the value-added tax:
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(A) XXX
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(B) XXX
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(C) XXX
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(D)xxx
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(E) XXX
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(F) XXX
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(G)xxx
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(H)xxx
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(I) XXX
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(J) XXX


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(K)XXX
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(L) XXX
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(M) XXX
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(N)xxx
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(O)xxx
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(P) XXX
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(Q)xxx
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(R)xxx
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(S)xxx
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(T) XXX
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(U)xxx
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(V) XXX
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(W) XXX
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(X) XXX
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(Y) XXX
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(Z) XXX
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(AA) XXX
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(BB) XXX
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(CC) IMPORTATION OF FILM MATERIALS AND EQUIPMENT BY
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PERSONS ENGAGED IN THE BUSINESS OF MAKING LOCAL
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FILMS AND OTHER CINEMATOGRAPHIC WORKS, FOR USE
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IN PRODUCING SUCH FILMS AND OTHER RELATED WORK;
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PROVIDED, THAT THE BUREAU OF INTERNAL REVENUE
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SHALL ISSUE THE NECESSARY GUIDELINES IDENTIFYING
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THE FILM MATERIALS AND EQUIPMENT THAT SHALL BE
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EXEMPT FROM VALUE-ADDED TAX AFTER PRIOR
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CONSULTATION WITH FILM PRODUCTION COMPANIES
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AND FILM DEVELOPMENT COUNCIL OF THE PHILIPPINES."
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SEC. 2. Exemption from Customs Duties. - Section 800 of Republic Act No.
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10863, or the Customs Modernization and Tariff Act, is hereby amended to read as
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follows:
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"SEC. 800. Conditionally Tax and/or Duty-Exempt Importation. - The
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following goods shall be exempt from the payment of import duties
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upon compliance with the formalities prescribed in the regulations
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which shall be promulgated by the Commissioner with the approval of
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the Secretary of Finance: xxx xxx xxx


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(a) XXX
(b) XXX 
(C) XXX
(d) XXX
(e) XXX
(f) XXX
(g) XXX
(h) XXX
(i) XXX 
(i) XXX
(k) XXX
(l) XXX
(m) xxx
(n) XXX 
(O) XXX
(p) XXX
(q) XXX
(r) XXX 
(S) XXX 
(t) XXX
(U) XXX
(V) XXX
(w) XXX
(x) XXX
(y) XXX 
(Z) XXX
(aa) XXX
(bb) IMPORTATION OF FILM MATERIALS AND EQUIPMENT, 
AS IDENTIFIED BY THE BUREAU OF INTERNAL REVENUE, 
BY PERSONS ENGAGED IN THE BUSINESS OF MAKING 
LOCAL FILMS AND OTHER CINEMATOGRAPHIC WORKS, 
FOR USE IN PRODUCING SUCH FILMS AND OTHER 
RELATED WORK."
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SEC. 3. Separability Clause. - If any provision of this Act shall be held
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unconstitutional or invalid, the other provisions not otherwise affected shall remain in
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full force and effect.


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SEC. 4. Repealing Clause. - All laws, executive orders, issuances, or any part
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thereof, which are inconsistent herewith, are hereby repealed or amended accordingly.
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SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,