SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular 
) 
'13 
JUL::O P:I :t;B 
SENATE 
S. No. 1170 
Introduced by Senator Antonio "Sonny" F, Trillanes IV 
EXPLANATORY NOTE 
Still in an indeterminate state, the Filipino music industry agonize with piracy levels reaching as 
high as 83 percent based on Philippine Association of the Record Industry (PARI). Given the 
flailing record industry, artists relying on live performances to make a living is just as 
challenging as being confronted with the threat of foreign production and high production cost. It 
is also worthy to note that producers and artists are further burdened by multiple taxes, from 
value added-tax (V AT) paid for services and materials and amusement tax paid to the local 
governmentl • Just as important is the fact that the International Intellectual Property Alliance 
also ranked music piracy in the country, the fifth strongest in the world and the second largest in 
Asia2• 
In light of encouraging and promoting the creation of original Fili8ino music and providing 
support to make the industry internationally-competitive, this bill ensures that the music 
industry provides cultural opportuoists to all Filipinos. Under this bill, the holding of operas, 
concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, literary 
and oratorical presentations, including pop rock, or similar concerts as long as they feature 
mainly Filipino artists and Filipino compositions shall be exempt from the payment of 
amusement tax. 
Furthermore, the proceeds from amusement tax from concerts and other music related 
presentation may be earmarked for subsidizing workshops of local theater musicals and/or 
training and workshops for local artists and composers. The remaining proceeds shall be shared 
equally by the province and the municipality where such amusement places are located. 
In view of the foregoing, passage of this bill is earnestly requested 
LLANES IV 
Senator 
I Information retrieved from http://www.abante.com.phlissue/apr30J3/istay104.htm#.UcvmlDs3BD4 on 5 June 
2013. 
2 Information retrieved from http://www.philstar.comiheadlines/686176/laX-breaks-perks-locaI-music-industrv on 5 
June 2013. 
3 This bi! was filed in the 15th Congress by Representatives Tinga, Casiiio, Mandanas, Gomez, Quimbo, Magsaysay 
(E.), Sarmiento (M.), Trenas, Cerafica, Mendoza (M.), Arroyo (D.), Umali CR.), Sarmiento CC.}, Padilla, Ting, Del 
Mar, Herrera-Dy, Acop, Acharon, Crisologo, Duavit, Garcia (A.), Dy, Romualdez, Climaco, Ejercito, De Venecia, 
Lagmao, Cua, Relampagos, Yap (A.), Javier And Abayol1, Per Committee Report No. 823 
. 
1 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
'13 
.JUL 30 r 3 :08 
SENATE 
11";0 
S.No. __ _ 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
PROVIDING FOR TAX EXEMPTIONS AND SUBSIDIES FOR THE LOCAL MUSIC 
INDUSTRY, AMENDING FOR THIS PURPOSE CERTAIN SECTIONS OF THE 
LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Local Music Industry 
2 
Incentives Act". 
3 
4 
SEC. 2. Declaration of Policy. - The State, in its belief that culture is a human right and 
5 
a manifestation of the freedom of belief and expression, shall promote and protect the Filipino 
6 
national culture which includes the local music industry. First and foremost, it shall encourage 
7 
and promote the creation of original Filipino music and provide support to make the industry 
8 
internationally competitive. It shall ensure that the music industry provides cultural opportunities 
9 
to all Filipinos. 
10 
11 
SEC. 3. Section 140 of Republic Act No. 7160, otherwise known as the "Local 
12 
Government Code of 1991", as amended by Republic Act No. 9640, is hereby further amended 
13 
to read as follows: 
14 
"SEC. 140. Amusement Tax. - (a) The province may levy an amusement tax to be 
15 
collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, 
16 
circuses, boxing stadia, and other places of amusement at a rate of not more than ten 
17 
percent (10%) of the gross receipts from admission fees. 
1 


1 
'~x x x 
2 
"(c) The holding of operas, concerts, dramas, recitals, painting and art exhibitions, 
3 
flower shows, musical programs, literary and oratorical presentations, [except] 
4 
INCLUDING pop, rock, or similar concerts AS LONG AS THEY FEATURE MAINLY 
5 
FILIPINO ARTISTS AND FILIPINO COMPOSITIONS shall be exempt from the 
6 
payment of the tax herein imposed. 
7 
"xxx 
8 
"(e) THE PROCEEDS FROM THE AMUSEMENT TAX FROM CONCERTS 
9 
AND OTHER MUSIC·RELATED PRESENTATION MAY BE EARMARKED FOR 
10 
SUBSIDIZING WORKSHOPS OF LOCAL THEATER MUSICALS AND/OR 
11 
TRAINING AND WORKSHOPS FOR LOCAL ARTISTS AND COMPOSERS. The 
12 
REMAINING proceeds [from the amusement tax] shall be shared equally by the province 
13 
and the municipality where such amusement places are located." 
14 
15 
SEC. 4. The Department of the Interior and Local Government, the National Commission 
16 
for Cultnre and the Arts, different music industry guilds and organizations, as well as producers 
17 
and other stakeholders shall, within sixty (60) days from the effectivity of this Act, promulgate 
.18 
the necessary rules and regulations for the effective implementation of this Act. 
19 
20 
SEC. 5. All laws, decrees, executive orders, rules and regulations or parts thereof which 
21 
are contrary to or inconsistent with this Act are hereby repealed, amended or otherwise modified 
22 
accordingly. 
23 
24 
SEC. 6. This Act shall take effect fifteen (15) days after its publication in the Official 
25 
Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
2