Senators oppose book tax
SENATORS Juan Miguel Zubiri and Edgardo “Sonny” Angara on Monday vowed to oppose the proposal to tax books and other reading materials under the proposed package 2 of the Tax Reform Acceleration and Inclusion (Train) Law.
Train 2, also called Tax Reform for Attracting Better and High Quality Opportunities ( Trabaho) bill passed by the House of Representatives, aims to “expand the tax base by repealing 123 special laws on investment tax incentives.” House Bill 8083 or Trabaho Bill repeals Section 12 of Republic Act 8047 or the Book Publishing Industry Development Act of 1994 authored by the late Senate President Edgardo Angara, is repealed.
This means that incentives, including VAT [ value- added tax] and customs- duty exemption, on importation of raw materials for book publication will be removed, which may result in higher prices of books.
RA 8047 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 dutyfree importation of books, as well as raw materials to be used in local publishing 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 that as 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.
“The tax exemption on these items should remain, as books are an integral part of education and learning. We should keep books as affordable and accessible as possible,” the Senate majority leader said.
“The internet cannot replace the value of reading and the literacy skills that accompany it. Books should remain tax- free, period,” Zubiri said.
“I will oppose the provision that will tax books and other reading, learning, and instructional materials and software,” he added.