SENATORS on Tuesday said they will oppose provisions under the second package of the tax reform program that impose taxes on books and other reading materials.
In a mobile phone message to reporters on Monday, Senate Majority Leader Juan Miguel F. Zubiri maintained that tax exemptions on books should be retained to ensure their affordability.
“I will oppose the provisions in the TRAIN (Tax Reform for Acceleration and Inclusion) 2 bill that will tax books and other reading and learning materials. 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,” he added.
Under the Senate version of TRAIN 2, the incentives provided for imported books or raw materials to be used in book publishing under Republic Act No. 8047 or the Book Publishing Industry Development Act will be repealed.
The Book Publishing Industry Development Act provides tax exemptions and duty-free importation on books 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).
Mr. Zubiri said that the retail prices of reading materials, trade and textbooks alike, will rise due to the removal of tax incentives.
Sen. Juan Edgardo M. Angara, who chairs the Senate committee on ways and means, also maintained that books should remain tax-free as provided in RA 8047, which was authored by his late father, Senate President Edgardo J. Angara.
“My father authored such law because he believed that the book publishing industry plays a vital role in national development…There is no equivalent value in the knowledge we get from reading, so it is not reasonable that we remove the incentives. We want a smarter population,” he said in a statement.
He also assured that publishers can continue to enjoy the incentives on importation of raw materials if the book publication is in the Strategic Investment Priority Plan of the Board of Investments (BoI).
Sale and importation of books will still be VAT- and customs-duty free under the National Internal Revenue Code and Republic Act No. 10863 or the Customs Modernization and Tariff Act, he added. — Camille A. Aguinaldo

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