EIGHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
SENATE 
;.B. NO. 
o u 7
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•19 
JUL 17 P2--48
Introduced by Senator Maria Lourdes Nancy S. Binay
____________________________ Ik.____
AN ACT
GRANTING FISCAL INCENTIVES TO MEDIA ENTITIES DEVOTING 
AIRTIME AND SPACE TO EDUCATIONAL PROGRAMS FOR CHILDREN, 
AND TO ADVERTISERS OR SPONSORS SUPPORTING SUCH PROGRAMS, 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Article II, Section 17 of the 1987 Philippine Constitution provides:
"The State shall give priority to education, science and 
technology, arts, culture, and sports to foster patriotism and 
nationalism, accelerate social progress, and promote total human 
liberation and development."
Article II, Section 24 of the 1987 Philippine Constitution provides:
"The State recognizes the vital role of communication and 
information in nation-building."
Media is everywhere and it plays a dominant role In the learning process. It has 
the potential to shape minds and change the way we perceive and understand 
things. Television is a powerful media since it can easily reach all sorts of people 
from different parts of the country. It can be a source of education and may 
work as an important part of the learning process by broadcasting immense 
knowledge and information.


Republic Act No. 8370, otherwise known as the "Children's Television Act of 
1997" was enacted to promote and encourage the production and broadcasting 
of developmentally-appropriate television programs for children through the 
administration of a national endowment fund for children's television.
However, even with this law, there is still less child-friendly programs on 
television. Thus, it is imperative that the government intervene in order to 
encourage media entities to invest in our children's future through the production 
of accessible educational programs thru mass media.
The proposed bill seeks to grant fiscal incentives to media entities that devote 
airtime to educational programs for children by exempting equipment, tools for 
production, transportation and communication facilities to be utilized for 
educational purposes.
In view of the foregoing, the passage of this measure is earnestly sought.
MARIA LOURDES NANQY S. BINAY 
Senator


EIGHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
SENATf. 
S.B. NO.
l&ff.il if .[>■ Svu 1 tf l{>
'19 
JUL 17 P2 -49
Introduced by Senator Maria Lourdes Nancy S. Binay
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AN ACT
GRANTING FISCAL INCENTIVES TO MEDIA ENTITIES DEVOTING 
AIRTIME AND SPACE TO EDUCATIONAL PROGRAMS FOR CHILDREN, 
AND TO ADVERTISERS OR SPONSORS SUPPORTING SUCH PROGRAMS, 
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
Section 1. Declaration o f Policy. -  It is hereby declared the policy of the 
State to recognize the vital roles of communication and information in nation 
building and shall take appropriate steps to make education accessible to all. 
Pursuant to this policy, the State shall promote, support, and provide incentives 
to mass media, as well as to sponsors or advertisers, who devote air time and 
space for educational purposes.
Sec. 2. Coverage. -  This Act shall apply to all kinds of mass media 
operating within the Philippines.
Sec. 3. Definition o f Terms. -  For purpose of this Act, the following terms 
shall mean as follows:
(a) "Mass media" refers to means of communication which 
includes both broadcast and film and print media that reach 
very large numbers of people;


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(b) "Broadcast 
media" 
refers 
to 
radio, 
television, 
cable 
broadcast, and the like;
(c) "Print media" refers to newspapers, magazines, reviews, 
bulletins, and other publications appearing at regular 
interval, with fixed prices for subscriptions appearing at 
regular interval, with fixed prices for subscription and sale 
and published within the Philippines;
(d) "Commercials 
and 
advertisements" 
refers 
to 
announcements, descriptions, presentations, advertising or 
promoting 
of something, 
as 
in 
goods 
for 
sale, 
in 
newspaper, magazine, television, radio, and the like;
(e) "Advertiser or sponsor" refers to the owner or the principal 
of the thing or product to be advertised or sponsored; and
(f) "Educational purposes" includes, but is not limited to, 
educational 
programs, 
publications, 
commercials, 
and 
advertisements which:
(1) Give positive influence on entertainment;
(2) Promote social values;
(3) Mobilize 
community 
support and 
wage
information campaigns directed at parents to 
promote the importance of basic education;
(4) Improve the image of technical education and 
skills training, and to inculcate the necessary 
values needed for productive employment;
(5) Propagate 
culture, foster 
patriotism,
nationalism, and other values that serve as 
instruments 
in 
the 
struggle 
for 
Filipino 
sovereignty, 
identity, 
national unity, 
and
integration; and


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(6) Such Other similar descriptions as the Secretary 
of Education may provide pursuant to the 
implementation of this Act.
Sec. 4. Tax Exempt Importation. -  The provisions of existing laws to the 
contrary, notwithstanding the machineries, equipment, tools for production, 
spare parts, supplies, materials, and transportation and communication facilities 
to be used actually, directly, and exclusively for educational purposes by media 
producers and publishers, are not subject to duty and internal revenue tax: 
Provided, That where the National Economic and Development Authority (NEDA) 
certifies to the availability of the abovementioned items in the local market of 
sufficient quantity, comparable quality, and price, or such tax-exempt items 
brought or imported into the Philippines are subsequently sold, transferred or 
exchanged in the Philippines to be devoted to non-educational purposes, the 
purchasers or recipients shall be considered the importer thereof, and shall be 
liable for the duty and internal revenue tax on such importation subject to 
depreciation allowance. The tax due on such items shall constitute a lien on the 
article itself, superior to all other charges or liens, irrespective of the possessor 
thereof.
Sec. 5. Donations for Educational Purpose. -  For purposes of this Act any 
amount paid and contributed for educational programs and publications by any 
individual or corporation which shall not exceed ten percent (10%) of their 
respective annual income computed without the benefit of any tax incentives 
under existing law shall be tax deductible.
Properties donated other than cash shall be valued in accordance with the 
rules and regulations prescribed by the Secretary of Finance in consultation with 
appropriate government agencies.


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Sec. 6. Program and Publications. -  The net income derived from 
educational programs and publications shall be tax-exempt for five (5) years 
from the start of its initial operation or until the produced and publisher shall 
have attained reasonable return of their investment. Thereafter, no part of the 
net income that inures to the benefit of the producer or publisher in an amount 
not in excess of twenty-five percent (25%) of the taxable income derived from 
the program or publication shall be allowed. The excess amount of the net 
income shall be devoted for the enhancement of the educational programs and 
publication, and for other educational purposes.
Sec. 7. Commercials and Advertisements. -  All expenses incurred in the 
production of commercials and advertisements for educational purposes under 
Section 3 of this Act, and approved by the Secretary of Education, shall enjoy tax 
deduction of not more than ten percent (10%) of the gross operating expenses 
of the advertisers or sponsors: 
Provided, That these commercials and 
advertisements are actually delivered to the general public.
Sec. 8. Airtime Rates and Cost o f Space. -  Broadcast media and print 
media shall receive ten percent (10%) lower airtime rates and cost of space for 
every paid feature of production or publication with educational content, as 
approved and certified by the Secretary of Education, or any equivalent 
government agency. The difference from the regular rate shall be chargeable to 
the value-added tax accruable.
Sec. 9. Government Cooperation. -  Every department, bureau, office 
agency or instrumentality of the government, including government-owned or 
controlled corporations, are enjoined to cooperate with the private sector in 
order to achieve the objectives of this Act.


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Sec. 10. Separability Clause. -  If any part or provision of this Act is held 
invalid, other parts or provisions hereof not affected thereby shall remain in full 
force and effect.
Sec. 11. Repealing Clause. -  All laws, decrees, orders, rules and 
regulations, or portions thereof inconsistent with this Act are hereby repealed, 
amended, or modified accordingly.
Sec. 12. Effectivity Clause. -  This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation.
Approved,