FOURTEENTH CONGRESS OF THE REPUBLIC ] 
OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S.B. NO. $426 
INTRODUCED BY SENATOR MANNY VILLAR 
EXP LAN AT0 RY NOT E 
Film production is a massive venture of commerce. And no doubt, the film industry has 
indeed become a vast creative enterprise that continues to have a profound effect on culture, 
politics and economics. It therefore exercises a very strong and pervasive influence in our society. 
However, it is disheartening to note that the Philippine film industry is already in the brink of 
dying. Among the reasons for the dying state of film industry are the onerous taxes (the highest 
imposition of which is the 30% amusement tax), the rising cost of production, dwindling local 
market, competition from foreign films, competition from video and cable, censorship, and 
uncontrolled video and cable piracy. Because of these various reasons, the production of quality 
films has thus been relegated since they do not constitute viable domestic investment. It is a 
practical reality that investors are more concerned with returns of their investment rather than the 
quality of films they produce. 
Thus, it cannot be denied that this sorry state of our local film industry is stifling the 
creativity of our local artists and prohibits us from utilizing the full potentials of our filmmakers to 
come up with quality films as a form of art and as an educational tool for molding the character of 
our people. 
Moreover, the imposition of 30% amusement tax by the local government is really quite 
high, which as a resultant effect, even further curbs the production, growth and development of our 
film industry. 
As a way of encouraging the growth, development and efficiency of the Philippine film 
industry, this bill therefore seeks to reduce the rate of amusement tax on gross receipts from 
admission fees of theaters and cinemas thereby amending Section 140 in relation to Section 151 of 
Republic Act 7160 or the Local Government Code of 1991 and other related laws. 
In response to the film industry's urgent appeal on this matter, I earnestly request my 
colleagues for their support for the early passage of this bill. 
Senator ' 


FOURTEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
1 
First Regular Session 
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INTRODUCED BY SENATOR MANNY VILLAR 
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AN ACT 
REDUCING THE RATE OF AMUSEMENT TAX ON ADMISSION FEES OF THEATERS AND 
CINEMAS, AMENDING FOR THE PURPOSE PARAGRAPH (A) SECTION 140 OF REPUBLIC 
ACT NO. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991, AND 
OF OTHER RELATED LAWS 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: 
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. 
Amusement 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 stadium, and other places of 
amusement at a rate of not more than thirty percent (30%) of the gross receipt from 
admission fees: PROVIDED, THAT IN CASE OF PROPRIETORS, LESSEES, OR 
OPERATORS OF THEATERS AND CINEMAS, THE AMUSEMENT TAX TO BE 
COLLECTED SHALL NOT BE MORE THAN TEN PERCENT (to%) OF THE 
GROSS RECEIPTS OF TICKET SALES FOR LOCALLY-PRODUCED FILMS: 
PROVIDED, FURTHER, THAT IN THE CASE OF FOREIGN-PRODUCED FILMS, 
THE AMUSEMENT TAX TO BE COLLECTED SHALL BE NOT MORE THAN 
TWENTY PERCENT (25%) OF THE GROSS RECEIPTS OF TICKET SALES: 
PROVIDED, FINALLY, THAT THE AMUSEMENT TAX TO BE COLLECTED 
FROM FOREIGN-PRODUCED FILMS SHALL BE EFFECTIVE FOR TWO (2) 
YEARS ONLY, AND THEREAFTER, AMUSEMENT TAX ON ALL FILMS SHALL 
NOT BE MORE THAN TEN PERCENT (10%) OF THE GROSS RECEIPTS OF 
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TICKET SALES." 


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SEC. 2. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts 
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thereof inconsistent with the provisions of this Act are hereby amended or modified accordingly. 
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SEC. 3. Effectivity. - This Act shall take effect fifleen (15) days afler its complete 
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publication in the Official Gazette or in at least two (2) national newspapers of general circulation 
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whichever date comes earlier. 
Approved,