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Republic of the Philippines [> RECEIVED 2
HOUSE OF REPRESENTATIVES m
Quezon City, Metro Manila X DATE August 9, 2022 wp
* TIME 9:30am *
Nineteenth Congress

First Regular Session

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HOUSE BILL NO. __ 3377 Wo INDEK?

Introduced by Hon. Bryan B. Revilla, Hon. Lani Mercado-Revilla and
Hon. Ramon "Jolo" Revilla TT

EXPLANATORY NOTE

‘The Philippine film industry is among the most heavily taxed in Asia, if not the world.'
Taxes levied from the film industry includes, amusement tax, culture tax, value added tax,
and tax on raw materials not to mention the income taxes of the talents and permit fees.

The Philippine movie industry has been struggling for its very existence in the face of
the rising costs of production — in the face of COVID-19 restrictions, fierce global
competition and the burden of excessive taxation. The decline in the number of locally
produced films may be attributed to heavy taxation by both the national and local
government.

The Philippines is one of Southeast Asia’s most prolific film-producing nations,
turning out about 70-80 movies a year, and occasionally, winning an award or two at one of
the leading international firm festivals. However, the commercial environment in our own
country’s market is far from ideal. In 2017, Philippine films had a 29% share of their
domestic box office, which is more of less in line with many other Southeast Asian
territories, but way lower than the 50% or more market share enjoyed by local films in
mainland China, south Korea and Japan? Like many Southeast Asian countries, low-budget
local productions find it difficult to compete with Hollywood blockbusters. Unfortunately,
the Philippine Movie Industry experiences rampant piracy as well as the lack of a strong
home entertainment market, making it more difficult for local Filipino producers to recoup
their costs.

" Hill Soriano, Rianne. Philippine Cinema in the 2000s: Issues to solve in the film indus
hutps:/riannehillsoriano convblog/philippine-cinema-in-the-2000s-issues-to-solve-in-th

Retrieved from:
justry

2 Filipino Film Industry Ponders Funding Problems and Cinema Shortfall, Retrieved from: " http://econom istspick-
research hktde, com/business-news/article/International-Market-News/Filipino-Film-Industry-Ponders-
Funding-Problems-and-Cinema-Shortfall/imn/en/VIX000000/IXOAF27N htm"


With the continuous decline of the Philippine Movie Industry during the last couple
of years, concerned members of the industry, after numerous consultations and dialogues,
decided to take action, To revive and ensure its future, industry leaders are now seeking
Congressional intervention by way of amendatory legislation to reduce the rates of taxes
that are levied and collected by the national and local government.

In view of the foregoing reasons, the approval of this bill is earnestly sought.

‘AN B. REVILLA HON. LA! IERCADO-REVILLA
Representative ‘epresentative

AGIMAT Partylist 2™ District of Cavite

JOLO” REVILLA III
fepresentative
District of Cavite


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILL NO. __3377__

Introduced by Hon. Bryan B. Revilla, Hon. Lani Mercado-Revilla and
Hon. Ramon "Jolo" Revilla IL

AN ACT
REVIVING THE PHILIPPINE MOVIE INDUSTRY BY PROVIDING
iCENTIVES TO THE PROPRIETORS, LESSEES, OPERATORS OF
THEATERS AND CINEMAS

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 “The Revival of the Philippine
Movie Industry Act.”

Sec. 2. Declaration of Policy. — Except for real property tax on land, no local and national
taxes as prescribed under Republic Act No. 8424, also known as the “National Internal
Revenue Code of 1997, As Amended” such as income tax, excise tax, value added tax and
under Republic Act No. 7160, also known as the “Local Government Code of 1991” such
as amusement tax, shall be imposed on proprietors, lessee, operators of theaters and cinemas
in relation to the showing or exhibition of movies and films produced by the Philippine
movie industry.

In lieu thereof, five percent (5%) of the gross income earned shall be paid as follows:

1. Three percent (3%) to the national government;
2. Two percent (2%) shall be remitted by the business establishment to the treasurer's
office of the municipality or city where the enterprise is located.

Sec. 3. Definition of Terms. — The term “Philippine Movie Industry” shall pertain to a
Filipino citizen or juridical entity engaged in the production of movies or films. In case of
juridical entities, Filipino ownership must be at least sixty percent (60%) to qualify as part
of the Philippine movie industry.

Sec. 4, Implementing Rules and Regulations. — Within thirty (30) days from the effectivity
of this Act, NCCA, FDCP, CCP and the Department of Finance (DOF), in consultation with
other government agencies and concerned stakeholders, shall promulgate the Implementing
Rules and Regulations (IRR) to carry out the provisions of this Act: Provided, That the non-
promulgation of the rules and regulations provided under this section shall not prevent the
immediate implementation of this Act upon effectivity.

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See. 5. Separability Clause. - If any part or provision of this Act is held invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.

Sec. 6. Repealing Clause. ~ All laws, decrees, orders, rules, and regulations, and other
issuances or parts thereof, which are contrary to or inconsistent with this Act are hereby
repealed, amended, or modified accordingly.

Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,

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