PRESIDENTIAL DECREE NO. 1987, October 05, 1985
AN ACT CREATING THE VIDEOGRAM REGULATORY BOARD.
videograms including, among others, videotapes, discs, cassettes or any
technical improvement or variation thereof, have greatly prejudiced the
operations of movie-houses and theaters, and have caused a sharp decline in
theatrical attendance by at least forty percent (40%) and a tremendous drop in
the collection of sales, contractors specific, amusement and other taxes,
thereby resulting in substantial losses estimated at P450 Million annually m
government revenues;
WHEREAS, videograms establishments collectively earn around
P600 Million per annum from rentals, sales and disposition of videograms, and
such earnings have not been subjected to tax, thereby depriving the Government
of approximately P180 Million in taxes each year;
WHEREAS, the unregulated activities of videogram
establishments have also affected the viability of the movie industry,
particularly the more than 1,200 moviehouses and theaters throughout the
country, and occasioned industry-wide displacement and unemployment due to the
shutdown of numerous moviehouses and theaters;
WHEREAS, in order to ensure national economic recovery, it
is imperative for the Government to create an environment conducive to the
growth and development of all business industries, including the movie industry
which has an accumulated investment of about P3 Billion;
WHEREAS, proper taxation of the activities of video-gram
establishments will not only alleviate the dire financial condition of the movie
industry upon which more than 75,000 families and 500,000 workers depend for
their livelihood, but also provide an additional source of revenue for the
Government, and at the same time rationalize the heretofore uncontrolled
distribution of videograms;
WHEREAS, the rampant and unregulated showing of obscene
videogram features constitutes a clear and present danger to the moral and
spiritual well-being of the youth, and impairs the mandate of the Constitution
for the State to support the rearing of the youth for civil efficiency and the
development of moral character and promote their physical, intellectual, and
social well-being;
WHEREAS, civic-minded citizens and groups have called for
remedial measures to curb these blatant malpractices which have flaunted our
censorship and copyright laws;
WHEREAS, in the face of these grave emergencies corroding
the moral values of the people and betraying the national economic recovery
program, bold emergency measures must be adopted with dispatch;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
decree:
SECTION 1. Creation.— There is hereby created an
office to be known as the Videogram Regulatory Board, hereinafter referred to as
the BOARD, which shall have its principal office in Metro Manila and shall be
under the Office of the President of the Philippines. The BOARD shall regulate
the importation, exportation, production, reproduction, distribution,
exhibition, showing, sale, lease or disposition of videograms including, among
others, videotapes, discs, cassettes or any technical improvement or variation
thereof in accordance with such rules and regulations to be adopted by the
BOARD.
SEC. 2. Composition of the Board.— The Board shall
be composed of a Chairman, a Vice-Chairman and eighteen (18) members who shall
all be appointed by the President of the Philippines to serve for a term of one
(1) year, unless sooner removed by the President for any cause;
Provided, That they shall be eligible for reappointment after the
expiration of their term. If the Chairman or Vice-Chairman or any of the members
fails to complete his term, any person appointed to fill the vacancy shall serve
only for the unexpired portion of the term of the Board member whom he
succeeds.
No person shall be appointed to the BOARD, unless he is a natural-born
citizen of the Philippines, not less than twenty-one years of age, and of good
moral character and standing in the community; Provided, That in the
selection of the members of the BOARD due consideration shall be given to such
qualifications as would produce a multi-sectoral combination of expertise in the
various areas of the videogram industry; Provided, further, That at
least five (5) members must be members of the Philippine Bar.
The Chairman, Vice-Chairman and members of the BOARD shall be entitled to
transportation, representation and other allowances which shall in no case
exceed Five Thousand Pesos (P5,000.00) per month.
SEC. 3. Powers and Functions. —The BOARD shall have
the following powers and functions:
- To supervise, regulate, grant, deny or cancel permits for the importation,
exportation, production, copying, sale, lease, exhibition or showing of
videograms including, among others, videotapes, discs, cassettes or any
technical improvement or variation thereof; - To approve or disapprove, delete objectionable portions from and/or prohibit
the importation, exportation, production, copying, distribution, sale, lease,
exhibition or showing of videograms, including, among others, videotapes, discs,
cassettes or any technical improvement or variation thereof, which, in the
judgment of the BOARD applying contemporary Filipino cultural values as basic
standard, are objectionable for being immoral, indecent, libelous, contrary to
law or good customs, or injurious to the prestige of the Republic of the
Philippines or its people, or with a dangerous tendency to encourage or fan
hatred, the commission of violence or of a wrong or crime, such as but not
limited to:i) Those which tend to incite subversion, insurrection, rebellion or sedition
against the State or otherwise threaten the economic and/or political stability
of the State;
ii) Those which tend to undermine the faith and confidence of
the people in their government and/or the duly constituted authorities;
iii)
Those which glorify criminals or condone crimes;
iv) Those which are libelous
or defamatory to the good name and reputation of any person, whether living or
dead;
v) Those which serve no other purpose but to satisfy the market for
excessive violence or hard-core pornography:
vi) Those which tend to abet the
traffic in and use of prohibited drugs; or
vii) Those which commit direct or
indirect contempt of any court of justice or quasi-judicial tribunal whether any
litigation on the subject of the video is pending or not before such court of
tribunal. - To classify all videograms into categories such as “For General Patronage”.
For Adults Only”, or such other categories as the BOARD may determine for
the
public interest; - To close video theaters and other similar establishments engaged in the
public exhibition or showing of videograms which violate the provisions of this
Decree and the rules and regulations promulgated by the BOARD pursuant thereto; - To levy, assess and collect, and periodically adjust and revise the rates of
fees and charges for the work of review and examination and for the issuance of
licenses and permits which the BOARD is authorized to grant in the exercise of
its powers and functions and in the performance of its duties and
responsibilities; - To review and examine all videograms, including among others, videotapes,
discs, cassettes or any technical improvement or variation thereof, as well as
publicity materials or advertisements related thereto, with the end in view of
making appropriate classification; - To deputize representatives from the government and from the various
associations in the videogram industry, whose main duties shall be to help and
ensure compliance with all laws, rules and regulations relative to this Decree.
For this purpose, the BOARD may constitute such Council or Councils composed of
representatives from the government and the videogram industry as may be
appropriate to implement the objectives of this Decree. The BOARD may also call
upon any law enforcement agency for assistance in the implementation and
enforcement of its decisions, orders and rules and regulations; - To cause the prosecution, on behalf of the People of the Philippines, of
violators of this Decree and the rules and regulations promulgated or issued by
the BOARD. - 9) To promulgate such rules and regulations as are necessary or proper for
the implementation of this Decree and the accomplishment of its purposes and
objectives. Such rules and regulations shall take effect after fifteen (15) days
following their publication in newspapers of general circulation in the
Philippines; - To prescribe the internal and operational systems and procedures for the
exercise of its powers and functions including the creation and vesting of
authority upon sub-committees of the BOARD for the work of review, examination
or classification and other related matters; and - To exercise such other powers and functions as may be necessary or
incidental to the attainment of the purposes and objectives of this Decree, and
to perform such other related duties and responsibilities as may be directed by
the President of the Philippines.
SEC. 4. Executive Officer. —The Chairman of the
HOARD shall be the Chief Executive Officer. He shall exercise the following
duties and functions:
- Execute, implement and enforce the decisions, orders, rules and regulations
promulgated or issued by the BOARD; - Direct and supervise the operations and the internal affairs
of the
BOARD: - Establish the internal organization and procedures of the BOARD, and
recommend to the BOARD the appointment of the necessary administrative and
subordinate personnel; and - Exercise such other powers and functions and perform such duties as are not
specifically lodged in the BOARD.
The Chief Executive Officer shall be assisted by an Executive Director who
shall be appointed by the President of the Philippines. The Executive Director
shall hold office for a term of one (1) year, unless sooner removed by the
President of the Philippines, for any cause.
Unless otherwise provided by law, the Chief Executive Officer shall
receive an annual salary of Seventy Two Thousands Pesos (P72,000.00) and the
Executive Director shall receive an annual salary of Sixty Thousand Pesos
(P60,000.00).
SEC. 6. Registration.— No person, whether natural
or juridical, may engage in the importation, exportation, production,
reproduction, exhibition, showing, sale, lease or disposition of videograms
unless such person is first registered with and permitted by the BOARD to
operate as such. The registration with and permit issued by the BOARD is a
condition precedent for securing a business permit or license from the
appropriate authorities.
SEC. 7. Reproduction of Cinematographic Art.— No
person registered and permitted to engage in the videogram industry can copy or
reproduce any cinematographic art without the written consent or approval of the
producer, importer or licensee of the cinematographic art to be copied or
reproduced, and in no case shall any cinematographic art be allowed to be copied
or reproduced within a period of six (6) months after it is first released for
theatrical exhibition, unless the producer, importer or licensee agrees to a
shorter period.
SEC. 8. Sale, Lease or Disposition of Videograms.
—No videogram including, among others, videotapes, discs, cassettes or any
technical improvement or variation thereof, shall be sold, leased or otherwise
disposed of unless first registered with the BOARD with the corresponding
registration identification or seal in such form and manner as may be
provided for by the BOARD.
SEC. 9. Penalty. —Any person who violates any or
all of the provisions of Sections 3, 6, 7, 8 and 10 of this Decree or the rules
and regulations to be promulgated pursuant thereto, either as principal,
accomplice or accessory, shall, upon conviction, suffer a mandatory penalty of
three (3) months and one (1) day to one (1) year imprisonment plus a fine of not
less than Fifty Thousand Pesos (P50,000.00) but not more than One Hundred
Thousand Pesos (P100.000.00). Should the offense be committed by a juridical
person, the chairman, the president, secretary, treasurer, or the partner
responsible therefor, shall be the persons penalized.
The provisions of Presidential Decree No. 968, as amended (Probation Law),
shall not apply in cases of violations of this Decree, including its
implementing rules and regulations.
SEC. 10. Tax on Sale, Lease or Disposition of
Videograms.— Notwithstanding any provision of law to the contrary, the
province shall collect a tax of thirty percent (30 %) of the purchase price or
rental rate, as the case may be. for every sale, lease or disposition of a
videogram containing a reproduction of any motion picture or audio-visual
program. Fifty percent (50 %) of the proceeds of the tax collected shall accrue
to the province, and the other fifty percent (50°£) shall accrue to the
municipality where the tax is collected: Provided, That in Metropolitan
Manila, the tax shall be shared equally by the city/municipality and the
Metropolitan Manila Commission.
The tax herein imposed shall be due and payable within the first twenty (201
days of the month next following that for which it is due. by the proprietor,
seller or lessor concerned, and such tax shall be determined on the basis of a
true and complete return of the amount of gross receipts derived during the
preceding month. If the tax is not paid within the time fixed herein above. the
taxpayer shall be subject to such surcharges, interests and penalties prescribed
by the Local Tax Code. In case of wilful neglect to file the return and pay the
tax within the time required, or in case a fraudulent rerun: is filed or a false
return is wilfully made, the taxpayer shall be subject to a surcharge of fifty
percent (50%) of the correct amount of the tax due in addition to the interest
and penalties provided by tie local Tax Code.
Any provision of law to the contrary notwithstanding a city may also levy and
collect among others, any of the taxes, fees and other impositions that the
province or the municipality may levy and collect.
SEC. 11. Assistance in the Entertainment Functions of
the BOARD. — deputize, for a fixed and limited period, the heads or
personnel of such agencies and units to perform enforcement function for the
BOARD. The government agencies and units exercising the enforcement functions
for the BOARD shall, insofar as such functions are concerned, be subject to the
direction and control of the BOARD.
SEC. 12. Organizational Pattern; Personnel. —The
BOARD shall determine its organizational structure and its staffing pattern. It
shall have the power to suspend or dismiss for cause any employee and/or approve
or disapprove the appointment, transfer or detail of employees. It shall appoint
the Secretary of the BOARD who shall be the official custodian of the records of
the meetings of the BOARD and who shall perform such other duties and functions
as directed by the BOARD.
SEC. 13. Applicability of Civil Service Law.—The
BOARD and its officers and employees shall be subject to the Civil Service Law,
rules and regulations; Provided, That technical personnel shall be
selected on the basis of merit and fitness to be determined in accordance with
such policies and guidelines as may be approved by the BOARD.
SEC. 14. Auditor. —The Chairman of the Commission
on Audit shall be the ex officio Auditor of the BOARD. For this purpose, he may
appoint a representative who shall be the auditor of the BOARD, together with
the necessary personnel to assist said representative in the performance of his
duties. The number and salaries of the auditor and said personnel shall be
determined by the Chairman of the Commission on Audit, subject to the rules and
regulations of the Commission on Audit. Said salaries and all other expenses of
maintaining the auditor’s office shall be paid by the BOARD.
The Auditor shall, as soon as practicable, but not later than three (3)
months after the accounts have been submitted to audit, send an annual report to
the BOARD. the Auditor shall also submit such periodic or special reports as the
BOARD may deem necessary or proper.
SEC. 15. Transitory Provision. — All videogram
establishments in the Philippines are hereby given a period of forty-five (45)
days after the effectivity of this Decree within which to register with and
secure a permit from the BOARD to engage in the videogram business and to
register with the BOARD all their inventories of videograms, including
videotapes, discs, cassettes or other technical improvements or variations
thereof, before they could be sold, leased, or otherwise disposed of. Thereafter
any videogram found in the possession of any person engaged in the videogram
business without the required proof of registration by the BOARD, shall be prima
facie evidence of violation of this Decree, whether the possession of such
videogram be for private showing and/or for public exhibition.
SEC. 16. Appropriations. —.The sum of Three Million
Pesos out of any available funds from the National Treasury is hereby
appropriated and authorized to be released for the organization of the BOARD and
its initial operations. Henceforth, funds sufficient to fully carry out the
functions and objectives of the BOARD shall be appropriated every fiscal year in
the General Appropriations Act.
All fees, revenues and receipts of the BOARD from any and all sources shall
be used to augment the funds to support the expenditures needed by the BOARD in
the pursuit of its purposes and objectives and the exercise o its powers and
functions, and for such other purposes as may hereafter be directed by the
President of the Philippines.
SEC. 17. Annual Reports. — The BOARD shall, within
three months after the end of every fiscal year, submit its annual report to the
President. The annual report shall include, among others, a statement of the
BOARDs accomplishments together with its plans and recommendations to improve
and develop its operations and the supervision and regulation of the videogram
industry.
SEC. 18. Separability Clause.— In case any
provision of this Decree shall be held or declared invalid or unconstitutional,
the validity of the other provisions shall not be affected thereby.
SEC. 19. Repealing Clause. —Any provision of law,
decree, executive order, letter of instructions or implementation, or other
rules and regulations inconsistent with the provisions of this Decree is hereby
repealed, amended or modified accordingly.
SEC. 20. Effectivity. —This Decree shall take
effect after fifteen (15) days following its publication in the Official
Gazette.
DONE in the City of Manila, this 5th day of October, in the year of Our Lord,
nineteen hundred and eighty-five.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President: (Sgd.) JUAN C. TUVERA Presidential Executive
Assistant