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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
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FIRST REGULAR SESSION 
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Introduced Bv Senator Francis N. Pangilinan 
Senate Bill No. - 
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EXPLANATORY NOTE 
Undeniably, broadcast media has revolutionized i t s  role in our daily 
lives. 
Its conspicuous presence pervades the intimacy of the Filipino home, 
with at least 5.7 million out of 12.7 million Filipino households owning a 
television set (as of 1994) and 28.5 million out of 50.4 million Filipinos aged 10 
years old and over (approximately 3 out of I O )  exposed to television. 
Teenagers spend at least 30 hours weekly in front of the television. Beyond 
merely asserting i t s  presence in every living room, however, broadcast media 
influences young and old viewers alike, determines national issues, and shapes 
public opinion. We are, therefore, left with the sole option of acknowledging 
the power of broadcast media and exploring its societal uses. 
Yet, it is equally true that the quality of Philippine programming has 
deteriorated over the years. 
Broadcast media is currently replete with highly 
commercialized entertainment programs. Until 1993, most locally produced 
programs were game shows and variety shows. 
Thus, the strong influence of 
these programs on our youth has caused increasing concern on i t s  adverse 
effects on the already declining literacy of the Filipino people. 
The proliferation of broadcast media and the breadth of i t s  audience 
make it a desirable and effective tool of instruction. As the youth dominates 
broadcast media's audience, it i s  most opportune to develop broadcast media 
as a medium of learning. Recognizing the crucial role that broadcast media 
plays in the promotion of the intellectual and social well-being of our youth 
and the deleterious effects of the continuing decline of Philippine broadcast 
programming, it i s  time we promote public broadcasting having high 
educational, historical, and cultural value. 
This bill aims to encourage the development, production, and broadcast 
of non-commercial and primarily educational, historical, and cultural television 
and radio programs that would directly contribute to the enrichment and 
enhancement of our youth's intelligence and social awareness. Mindful of the 
considerable expenses required for the production of such programs, the bill 
proposes to grant tax incentives to television and radio stations and cable 
television systems which develop, produce, and broadcast non-commercial and 
primarily educational, cultural, and historical programs and to donors to such 
programs. 
It is hoped that by granting these incentives, economically 
sustainable, high quality and non-commercial educational, historical, and 
cultural programs can be developed without unmanageable financial risk to 
broadcast media entities, thus impelling greater participation in public 
broadcasting. 


In view of advancing both the interests of broadcast media entities and 
the welfare of the audience especially the youth, passage of this bill i s  
earnestly requested. 


'M I\lOY 1 1 419 '4" 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
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FIRST REGULAR SESSION 
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RECSWpiD BY : 
Senate Bill No. 
Introduced By Senator Francis PI. Pangilinan 
AN ACT 
PROMOTING QUALITY NON-COMMERCIAL AND PRIMARILY EDUCATIONAL, 
HISTORICAL, AND CULTURAL TELEVlSlON AND RADIO PROGRAMS 5Y 
PROVIDING TAX INCENTIVES TO TELEVISION AND RADIO STATIONS AND CABLE 
TELEVISION SYSTEMS WHICH DEVELOP, PRODUCE, AND BROADCAST SUCH 
PROGRAMS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
SEC. 1. Title. - This Act shall be known as the "Public Broadcasting Tax 
Philippines in Congress assembled: 
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Incentives Act." 
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SEC. 2. Declaration of Policy. - It i s  the policy of the State to encourage 
and advance high quality broadcasting with educational, historical, and cultural 
value that would inform, enlighten, and educate the public as well as promote, 
enrich, and enhance Philippine society and culture. 
SEC. 3. Definition of terms. - As used in this Act, the following terms 
shall mean or be interpreted and construed as hereunder defined: 
(a) "Broadcasting" shall refer to an undertaking the object of which is to 
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transmit programs, either directly by radio waves or other m,t.ans of 
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telecommunication, or indirectly through a distribution undertaki ig, for 
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reception by the public by means of broadcasting receiving apparatus, but shall 
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not include re-transmissions; 
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(b) 
"Re-transmission" shall refer to receiving and simultaneously 
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transmitting, irrespective of the technical means employed, complete and 
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unchanged radio or television program services, or important parts of such 
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services, transmitted by broadcasters for reception by the general public; 
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(c) ’ “Public broadcasting’$ shall refer to the production and broadcast of 
non-commercial and primarily educational, cultural, and historical television or 
radio programs; 
(d) “Program” shall refer to sounds or visual images, or a combination of 
sounds and visual images, that are intended to inform, enlighten or entertain, 
but does not include visual images, whether or not combined with sounds, that 
consist predominantly of alphanumeric text; 
(e) “Television 
Broadcasting” shall refer to public showing by 
transmitting sound or images by television or similar equipment, including 
cable television, and other Limited audience distribution; 
(f) “Television Station” or “Television Broadcast Station” shall refer to 
any television broadcast station authorized to operate on a channel regularly 
allocated to a community; 
(g) “Radio Station” or “Radio Broadcast Station” shall refer to any radio 
broadcast station authorized to operate on a radio frequency regularly 
allocated to a community; and 
(h) “Cable Television System” or “Community Antenna Television 
(CATV)” shall refer to any facility that, in whole or in part, receives directly or 
indirectly over the air, and amplifies or otherwise improves the signals 
transmitting programs broadcast by one or more television, satellite or radio 
stations and distributes such signal by wire or cable to subscribing members of 
the pub(ic who pay for such service@), but such term shall not include (i) any 
such facility that serves fewer than 50 subscribers, or (ii) any such facility that 
serves only the residents of one or more apartment dwellings under common 
ownership, control or manapement, and commercial establishments located on 
the premises of such an apartment house, which may be subject to other laws 
and regulations. For purposes of this Act, entities having a single head-end and 
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identical ownership of facilities extending into several communities shall be 
considered as a single entity. 
Pursuant to the thrusts of this Act, non-commercial and primarily 
educational, historical, and cultural programs shall refer to high-quality 
noncommercial broadcast media programs having particular emphasis on 
children’s programming with high educational, historical, and cultural value. 
SEC. 4. 
Tax Incentives.- 
In computing taxable income, a television 
station, a radio station, and a cable television system, may, at i t s  option, 
deduct research and development expenditures paid or incurred in the 
development and production of non-commercial and primarily educational, 
cultural, and historical television or radio programs for public broadcasting 
during the taxable year, Provided that, the total amount deductible shall not 
exceed twenty percent (20%) of the taxpayer’s taxable income computed 
without the benefit of any tax incentives under existing laws, Provided further, 
that this shall not apply to expenditures for the acquisition or improvement of 
property of a character which i s  subject to the allowance for depreciation 
under the National Internal Revenue Code but the allowance for depreciation 
thereon shall be treated as expenditures. The election by the taxpayer to 
deduct the development and production expenditures i s  irrevocable and shall 
be binding in succeeding taxable years. 
SEC. 5. Tax Deduction or Exemption of Donations and Contributions.- 
Donations, contributions, gifts, or grants for the construction or operation of 
non-commercial and primarily educational, cultural, and historical broadcast 
stations or for the production, acquisition, distribution, or dissemination of 
noncommercial and primarily educational, cultural, and historical television or 
radio programs shall be exempt from donor’s taxes and shall be deductible in 
full from the gross income of the donor. The tax privilege may only be claimed 
for the taxable year the donation was made. 


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SEC. 6. Repealing Clause. - All telecommunications and broadcasting 
franchises and other provisions of laws, orders, decrees, including rules and 
regulations inconsistent herewith are hereby repealed andlor modified 
accordingly. 
SEC. 7. Separability Clause. - If any part or provision of this Act shall be 
held to be unconstitutional or invalid, other provisions hereof which are not 
affected thereby shall continue to be in full force and effect. 
SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days 
following i t s  publication in one (1) national newspaper of general circulation. 
Approved,