SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
'14 
FEB 25 P 4 :32 
SENATE 
S,B, 2143 
RECEIVED HY;'f 
Introduced by Senator Poe 
AN ACT 
PROVIDING FOR TAX EXEMPTIONS AND SUBSIDIES FOR THE LOCAL MUSIC 
INDUSTRY AND AMENDING CERTAIN SECTIONS OF 
REPUBLIC ACT NO. 7160 OR THE LOCAL GOVERNMENT'CODE OF 1991 
EXPLANATORY NOTE 
Filipinos are globally recognized, especially in music. Global talent shows have 
proven that Filipino singers are on par with their international counterparts. 
The growing phenomenon of piracy, however, has not only affected local artists 
but also affected music producers around the world with the advent of the Internet, as 
music can be downloaded freely. According to the Philippine Association of the Record 
Industry (PARI), a non-stock and non-profit organization dedicated for the music 
industry, 
Despite laws and state agencies dedicated to combat music piracy and protect 
copyrights, industry estimates indicate that more than P1 billion in revenue losses for 
the music industry. Further, according to the United States-based International 
Intellectual Property Alliance's (IIPA) Special 301 Report on Copyright Protection and 
Enforcement 2014 submitted to the US. Trade Representative (USTR) and other u.s. 
government agencies, "while access to the Internet in the areas outside Metro Manila is 
still not that well-established, Internet penetration in the cities is growing. Internet 
piracy is growing along with it, through P2P file-sharing services, BitTorrent file-
sharing, deep linking, blogs providing links to pirate materials, and cyberlockers used 
to store infringing material, to which pirates then sell passwords for illegal access." The 
IIP A had ranked the country as fifth in global and second in Asian music piracy. In 2009 
alone, the Philippines lost around $112.2 million in audio CD sales. 
To protect the interests of and further empower our local music producers and 
artists, the exemption for amusement tax for local artists promoting original Filipino 
music should be promoted. Local music producers and artists have complained of high 
amusement taxes as one of the reasons of hardly earning in concerts. 
• 


Under this proposal, amusement tax derived from concerts of foreign artists will 
be earmarked for workshop subsidies needed by our local theater groups, as well as 
trainings and workshops for artists and composers to encourage the creation of original 
Filipino music. 
The previous Congress had already approved this measure on third and final 
reading, and as such, immediate approval of this bill is earnestly sought in the 16'h 
Congress. 
• 
• 


, . 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S,B, 2143 
Introduced by Senator Poe 
AN ACT 
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'14 
FEB 25 P 4 :32 
PROVIDING FOR TAX EXEMPTIONS AND SUBSIDIES FOR THE LOCAL MUSIC 
INDUSTRY AND AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 7160 
OR THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Local Music Industry 
Incentive Act of 2013." 
SECTION 2. Declaration of policy. - The State, in its belief that culture is a 
human right and a manifestation of the freedom of belief and expression, shall promote 
and protect the Filipino national culture which includes the local music industry. First 
and foremost, it shall encourage and promote the creation of original Filipino music and 
provide support to make the industry internationally competitive. It shall ensure that 
the music industry provides cultural opportunities to all Filipinos. 
SECTION 3. Section 140 of Republic Act No. 7160, otherwise known as "The 
Local Government Code of 1991," as amended by Republic Act No. 9640, 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 stadiums and other places of amusement at a rate of not 
more than ten percent (10%) of the gross receipts from the admissions fees. 
Xxx 
"(c) The holding of operas, concerts, dramas, recitals, painting and art 
exhibitions, 
flower 
shows, 
musical programs, 
literary 
and oratorical 
presentations, [except] INCLUDING pop, rock, or similar concerts AS LONG AS 
THEY 
FEATURE 
MAINLY 
FILIPINO 
ARTISTS 
AND 
FILIPINO 
COMPOSITIONS shall be exempt from the payment of the tax herein imposed. 
• 


Xxx 
"(e) THE PROCEEDS FROM THE AMUSEMENT TAX FROM CONCERTS AND 
OTHER MUSIC-RELATED PRESENTATIONS SHALL BE EARMARKED FOR 
SUBSIDIZING WORKSHOPS OF LOCAL THEATER MUSICALS AND/OR 
TRAINING AND WORKSHOPS FOR LOCAL ARTISTS AND COMPOSERS. 
The REMAINING proceeds [from the amusement tax] shall be shared equally by 
the province and the municipality where such amusement places are located." 
SECTION 4. Implementing Rules and Regulations. - The Department of the 
Interior and Local Government, the National Commission for Culture and the Arts, 
different music industry guilds and organizations, as well as producers and other 
stakeholders shall, within sixty (60) days from the effectivity' of this Act, promulgate the 
necessary rules and regulations for the effective implementation of this Act. 
SECTION 5. Constitutionality. - Should any provision of this Act be declared 
invalid or unconstitutional, the validity or constitutionality of the other provisions shall 
not be affected thereby. 
SECTION 6. Repealing Clause. - All laws, decreeS, letters of instructions, 
resolutions, orders, ordinances or parts thereof which are inconsistent with the 
provisions of this Act, are hereby repealed, amended, or modified accordingly. 
SECTION 7. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved, 
• 
"