WHEREAS,
the proliferation and unregulated circulation of videograms including,
among others, videotapes, discs, cassettes or any technical improvement
or variation thereof, have greatly prejudiced the operations of
moviehouses 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, contractor's specific, amusement and other taxes,
thereby resulting in substantial losses estimated at P450 Million
annually in government revenues; chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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; chanroblesvirtualawlibrary
WHEREAS, proper taxation of the activities of videogram 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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
WHEREAS, civic-minded citizens and groups have called for remedial
measures to curb these blatant malpractices which have flaunted our
censorship and copyright laws; chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree:cralaw:red
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, casettes or any technical improvement or variation thereof in
accordance with such rules and regulations to be adopted by the
BOARD. chanroblesvirtualawlibrary
Section 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. chanroblesvirtualawlibrary
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.
Section 3. Powers and Functions. — The BOARD shall
have the following powers and functions:cralaw:red
1) 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;chanroblesvirtualawlibrary
2) 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:cralaw:red
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;chanroblesvirtualawlibrary
ii) Those which tend to undermine the faith and
confidence of the people in their government and/or the duly
constituted authorities;chanroblesvirtualawlibrary
iii) Those which glorify criminals or condone crimes;chanroblesvirtualawlibrary
iv) Those which are libelous or defamatory to the
good name and reputation of any person, whether living or dead;chanroblesvirtualawlibrary
v) Those which serve no other purpose but to satisfy
the market for excessive violence or hard-core pornography;chanroblesvirtualawlibrary
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. chanroblesvirtualawlibrary
3) 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;chanroblesvirtualawlibrary
4) 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;chanroblesvirtualawlibrary
5) 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;chanroblesvirtualawlibrary
6) 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; chanroblesvirtualawlibrary
7) 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; chanroblesvirtualawlibrary
8) 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;chanroblesvirtualawlibrary
10) 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
11) 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.
Section 4. Executive Officer. — The Chairman of the
BOARD shall be the Chief Executive Officer. He shall Exercise the
following duties and functions:cralaw:red
a) Execute, implement and enforce the decisions,
orders, rules and regulations promulgated or issued by the BOARD;chanroblesvirtualawlibrary
b) Direct and supervise the operations and the
internal affairs of the BOARD;chanroblesvirtualawlibrary
c) Establish the internal organization and
administrative procedures of the BOARD, and recommend to the BOARD the
appointment of the necessary administrative and subordinate personnel;
and
d) 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 Thousand Pesos (P72,000.00) and
the Executive Director shall receive an annual salary of Sixty Thousand
Pesos (P60,000.00).
* Section 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.
Section 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
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. chanroblesvirtualawlibrary
Section 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 audiovisual 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 equally
by the city/municipality and the Metropolitan Manila Commission.
The tax herein imposed shall be due and payable within the first twenty
(20) 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 hereinabove, 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 return is filed or a
false return is willfully 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 the 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.
Section 11. Assistance in the Enforcement Functions
of the BOARD. — The BOARD may solicit the direct assistance of other
agencies and units of the government, and 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.
Section 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.
Section 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. chanroblesvirtualawlibrary
Section 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. chanroblesvirtualawlibrary
Section 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 form 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.
Section 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. chanroblesvirtualawlibrary
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 of its powers and functions, and for such other purposes as
may hereafter be directed by the President of the Philippines.
Section 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 BOARD's accomplishments together with its plans and
recommendations to improve and develop its operations and the
supervision and regulation of the videogram industry.
Section 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.
Section 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.
Section 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.
* Copied verbatim from documents obtained directly
from Malacañang Records (missing Section 5).
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