Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 66

Authored by Hon. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

According to Section 20 of Article II of the 1987 Constitution, “The State
recognizes the indispensable role of the private sector, encourages private
enterprises, and provides incentives to needed investments.”

True to his administration’s agenda of increasing the literacy rate of the
Filipinos especially the poorest of the poor, President Joseph Ejercito Estrada
has signed on July 4, 1999 an Executive Order adopting the National Book
Policy (NBP). All government policies towards the growth and development
of the book publishing industry have been institutionalized under said NDB.
The National Book Development Board (NBDB) is mandated to implement
the said policies in order to ensure the effective, sustained and successful
implementation of the NBP. The NBP is still enforceable and implementable.

Among the policies enunciated therein is that: “The State shall support the
development of the book publishing in all regions of the country, streamline
the bureaucracy with respect to book publishing and provide fiscal or non-
fiscal incentives to book publishing industry.”

There is therefore a significant need to delineate said incentives in order to
guarantee the affordability, accessibility and quality of the textbooks and
related educational materials as well as to be transparent in all transactions
concerning the same.

However, until today, there are still no clear guidelines on incentives on
book trade transactions. Said lack of clear guidelines is manifested in the
textbook scandal which hit the media through the Maslog incident. Based on
news report, “under the table considerations and/or exorbitant discounts,”
serve as the criteria for the purchase of the books, textbooks and other
reading materials instead of merits and quality thereof.

This bill seeks to adopt the Retail Price Maintenance and Uniform Discounting
Scheme, consistent with the NDB. Through the enactment of this bill, the
government could ensure affordable, accessible and quality-laden textbooks
and related educational materials for students of private and public schools.

The bill provides for a uniform discount scheme of not lower than ten (10)

percent but not more than twenty-five (25) percent to bookstores or private
educational institutions.


It is known that Japan, South Korea, Germany and other progressive
countries have been adopting the Retail Price Maintenance and Uniform
Discounting Scheme. Under the said scheme, the publisher shall maintain
the retail prices of their products everywhere while giving a uniform discount
to bookstores.

Considering that school year 2011-2012 is fast approaching and the students
and parents are purchasing books, regulation on the discounting scheme is
necessary if not imperative.

In view of the foregoing the immediate enactment of the bill is earnestly
sought.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 666

Authored by Hon. JOSEPH VICTOR G. EJERCITO

AN ACT
ADOPTING A RETAIL PRICE MAINTENANCE AND UNIFORM
DISCOUNTING SCHEME IN BOOK TRADE TO ENSURE
AFFORDABLE, ACCESSIBLE AND QUALITY-LADEN
TEXTBOOKS AND OTHER RELATED EDUCATIONAL
MATERIALS FOR PRIVATE AND PUBLIC SCHOOLS

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. This Act shall be known as the “Book Retail Price
Maintenance and Uniform Discounting Act of 2010.”
SECTION 2. The State declares to support the development of the book
publishing industry in all regions of the country and to provide fiscal and
non-fiscal incentives to book publishing industry.

SECTION 3. Bookstores outside the cities and provincial capitals shall be
registered with the duly organized publishing association and accredited by
the National Book Development Board (NBDB).

3.1 With the aforementioned criteria, bookstores shall be entitled to the
following:

a. A six-year tax holiday from the start of commercial operations for
upstart firms and a four-year tax holiday for established firms;

b. Deductions from taxable income for five (5) years of 50% of the
wages corresponding to the increment in the number of direct labor
hired;

c. Low interest loans with participating banks;

d. Availment of the retail price and uniform discounting scheme

SECTION 4. The uniform discount scheme shall be not lower than ten
(10%) percent but not more than twenty-five (25%) percent to be given by
the publishers only to bookstores accredited and registered with the duly

organized publishing association and registered with the NBDB, irrespective
of their location.

SECTION 5. The uniform discount scheme of not lower than ten (10%)
percent but not higher than twenty-five (25%) percent shall also be given by
publishing association or its educational agent or material consultant to
private educational institutions, schools’ bookstores or to private hook


coordinators or subject coordinators. However, the scheme does not allow
other considerations aside from the discount, such as loan facilities, motor
vehicles, travel abroad, accommodation and the likes.

SECTION 6. The duly organized and accredited publishing association shall
declare its retail price to the NBDB and declared price shall be observed
nationwide. Alteration of the declared price can only be valid upon a formal
pronouncement by the publisher concerned and that the same must be
forwarded -to the NBDB to have efficacy.

SECTION 7. Anyone who violates any provision of this Act shall suffer the
imprisonment of four (4) years to six (6) years and a fine of Two Million
Pesos (P2,000,000), in addition to penalties imposed under R.A. No. 8047
and the Executive Order adopting the National Book Policy.

SECTION 8. The NBDB, in consultation with the Department of Education
(DepEd), and the other appropriate agencies from the government sector
and with the active participation of the private sector, shall promulgate the
implementing rules and regulations within sixty (60) days from the
enactment of this bill. A copy of such guidelines, rules and regulations shall
be furnished to the Congress of the Philippines through the Committee on
Education, Arts and Culture of both Houses.

SECTION 9. If any provision of this Act or the application of such provision
to any person or circumstances is declared unconstitutional, the remainder
of the Act or the application of such provision to other provision, to other
person, entity or circumstances shall not be affected by such declaration.

SECTION 10. All laws, decrees, rules and regulations and other
administrative issuances or circulars or provisions therefore which are
contrary to or inconsistent herewith are hereby repealed or modified
accordingly.

SECTION 11. This Act shall take effect fifteen (15) days from the date of its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,