MANILA -- Two senators on Monday expressed their opposition to a provision in the Corporate Income Tax and Incentives Reform Act, better known as TRAIN 2, which seeks to remove incentives previously afforded to persons and enterprises in the publishing industry.
As stated in the bill’s explanatory note, the measure will “expand the tax base by repealing 123 special laws on investment tax incentives."
Senate Majority Leader Juan Miguel Zubiri noted that one such provision listed to be repealed in TRAIN 2 is Section 12 of RA 8047, the Book Publishing Industry Development Act, which ensures that "books, magazines, periodicals, newspapers, including book publishing and printing, as well as its distribution and circulation, shall be exempt from the coverage of the expanded value added tax law."
This also guarantees the duty-free importation of books, as well as raw materials to be used in local publishing.
All of these are guaranteed, provided that a publisher or distributor is registered with the National Book Development Board, and their book development activities are included in the Investment Priority Plan (IPP).
Zubiri said since RA 8047 encompasses all types of publications, its repeal would affect the prices not only of books for leisure, but books for educational use as well, including instructional materials for teachers.
"I will oppose the provision that will tax books and other reading, learning, and instructional materials and software. The tax exemption on these items should remain, as books are an integral part of education and learning," he said.
“We should keep books as affordable and accessible as possible. The internet cannot replace the value of reading and the literacy skills that accompany it. Books should remain tax-free, period," Zubiri said.
Meanwhile, Senator Sonny Angara assured that his committee will not touch any provision that grants incentives and tax exemptions to the book publishing industry.
Angara chairs the Senate Committee on Ways and Means, which is set to conduct its first hearing on the Corporate Income Tax and Incentives Reform Act on September 25.
The lawmaker pointed out that RA 8047 was authored by his father, the late Senate President Edgardo Angara.
"My father authored such law because he believed that the book publishing industry plays a vital role in national development. He used to say that books are the most effective and economical tools for achieving educational growth,” he said.
"Walang katumbas na halaga ang nakukuha nating kaalaman at talino mula sa pagbabasa, kaya hindi makatwiran na tanggalan ito ng insentibo (The wisdom and knowledge that we acquire from reading is invaluable, so it’s not reasonable to remove the incentives). We want a smarter population," Angara said.
He added that raising the price of books would lead to a further decline in the number of Filipino readers in the country.
He cited that a Social Weather Stations (SWS) survey on the reading habits of Filipinos has showed that the number of Filipino adult readers of books declined from 90 percent in 2003 to 80 percent in 2012.
The same survey also showed that majority of Filipino readers borrow or receive books as gifts rather than buy one for personal use.
"Kapag tumaas ang presyo ng mga libro, mas lalong hindi na ito magiging abot-kaya at posibleng bumaba pa ang bilang ng Filipino readers (If current book prices go up, books would be more beyond reach and would possibly lead to further decline in the number of Filipino readers). We should not let this happen," Angara said. (PNA)
