THIRTEENTH CONGRESS OF THE REPUBLIC ) 
1 
: l i d  t5:48 
OF THE PHnIPPINES 
Second Regular Session 
1 
S E N A T E  
S.B. N o . & X 8  
Introduced by Senator RAMON BONG REVILLA, JR., MANUEL “LITO’ M. 
LAPID and JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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 andor 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 cinemdtheater 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 the top rate of 30% of its gross receipts. With the passage of Republic 
Act No, 9337, the Bureau of Internal Revenue has imposed a further 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 fdm 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 cwently being levied on 


2 
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. 
I 
Hence, passage of this bill is urgently requested. /7 
J 
GO EJERCITO ESTRADA 
e 


..E :UP r E  
; 
:,i. ill; Ti,@& 
~~~~~~~~~ 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
1 
5 NQV 14 Ps:48 
OF THE PHILIPPINES 
Second Regular Session 
1 
S E N A T E  
S.B. No. 
Introduced by Senators RAMON BONG REVILLA, JR., MANUEL “LIT0 M 
LAPID and JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING SECTION ONE HUNDRED FORTY OF REPUBLIC ACT 
7160, OTHERWISE KNOWN AS THE “LOCAL GOVERNMENT CODE 
OF 1991” AND FOR OTHER PURPOSES 
@e it eitacted 6y the Serlate andXousc of %‘pzsentatives of the @ii@piiies in 
congress, assern6hd 
SECTION 1. 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. Aimsement 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 amended or repealed. 
Sec. 3. Effectiviv. - 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,