REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7676

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Still in an indeterminate state, the Filipino music industry struggle with piracy levels reaching as
high as 83 percent based on Philippine Association of the Record Industry (PARI). Given the
failing 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 (VAT) paid for services and materials and amusement tax paid to the local
government!. Just as important is the fact that the International Intellectual Property Alliance
also ranked music piracy in the country, the fifh strongest in the world and the second largest in
Asia

In light of encouraging and promoting the creation of original Filipino music and providing
support to make the industry internationally-competitive, this bill ensures that the music industry
provides cultural opportunists 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
training and workshops for local artists and composers. The remaining proceeds shall be
equally by the province and the municipality where such amusement places are located.

In view of the foregoing, immediately passage of this bill is earnestly sought.

ARY/C. ALEJANO
Representative
Magdalo Para sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7676

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

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 the House of Representatives of the Philippines in
Congress assembled:

SECTION
Incentives Act".

Short Title. - This Act shall be known as the "Local Music Industry

SEC. 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.

SEC. 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 further 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 stadia, and other places of amusement at a rate of not more than ten
percent (10%) of the gross receipts from admission fees.

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"(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.

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"(e) THE PROCEEDS FROM THE 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 [from the amusement tax] shall be shared equally by the province
and the municipality where such amusement places are located.”

SEC. 4. 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.


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SEC. 5. All laws, decrees, executive orders, rules and regulations or parts thereof which
are contrary to or inconsistent with this Act are hereby repealed, amended or otherwise modified
accordingly.

SEC. 6. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in at least two (2) newspapers of general circulation.

Approved,