The House of Representatives on Monday approved on third and final reading two measures renewing for another 25 years the franchises granted to Smart Communications and GMA Network.
The franchises of Smart Communications and GMA Network will respectively expire on March 27 and 20.
House Bill 4637 seeks to amend Republic Act (RA) 7294, or “an act granting Smart Information Technologies Inc. a franchise to establish, install, maintain, lease and operate integrated telecommunications/computer/electronics services and stations throughout the Philippines for public domestic and international telecommunications, and for other purposes.”
Under the bill, Smart Communications and its successors or assignees shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations that are now or hereafter may be required by law to pay, except radio telecommunications and electronic communications equipment, machinery and spare parts needed in connection with the business of the grantee, which shall be exempt from customs duties, tariffs and other taxes, as well as those declared exempt in this section.
It added that the grantee, its successors or assignees shall pay a value-added tax on all gross receipts of the business transacted under this franchise by the grantee, its successors or assignees in the Philippines in lieu of any and all taxes of any kind, nature or description levied, established or collected by an authority whatsoever, including, but not limited to, city, municipal, provincial or national, from which the grantee is hereby expressly exempted effective from the date of the approval of this act.
The bill said failure of Smart to submit requisite annual report to Congress shall be penalized by a fine in the amount of P500 per working day of noncompliance. The fine shall be collected by the National Telecommunications Commission (NTC) from the delinquent franchise grantee separate from the reportorial penalties imposed by the NTC.
Meanwhile, House Bill 4631 said subject to the provisions of the Constitution and applicable laws, rules and regulation the franchise granted to GMA Network, its successors or assignees under RA 7252 to construct, install, establish, operate and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines, including digital television system, operation of any station or facility in the interest of public safety, security and public welfare or to authorize the temporary use and operation thereof by any agency of the government, upon due compensation to the grantee, for the use of the stations or facilities during the period when they shall be so operated.
“This franchise shall be in effect for 25 years from the effectivity of this act, unless sooner revoked or canceled. In the event the grantee fails to operate continuously for two years, this franchise shall be deemed ipso facto revoked,” the bill added.
The two bills will be submitted to the Senate for its own deliberations.
The franchises of Smart Communications and GMA Network will respectively expire on March 27 and 20.
House Bill 4637 seeks to amend Republic Act (RA) 7294, or “an act granting Smart Information Technologies Inc. a franchise to establish, install, maintain, lease and operate integrated telecommunications/computer/electronics services and stations throughout the Philippines for public domestic and international telecommunications, and for other purposes.”
Under the bill, Smart Communications and its successors or assignees shall be liable to pay the same taxes on their real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations that are now or hereafter may be required by law to pay, except radio telecommunications and electronic communications equipment, machinery and spare parts needed in connection with the business of the grantee, which shall be exempt from customs duties, tariffs and other taxes, as well as those declared exempt in this section.
It added that the grantee, its successors or assignees shall pay a value-added tax on all gross receipts of the business transacted under this franchise by the grantee, its successors or assignees in the Philippines in lieu of any and all taxes of any kind, nature or description levied, established or collected by an authority whatsoever, including, but not limited to, city, municipal, provincial or national, from which the grantee is hereby expressly exempted effective from the date of the approval of this act.
The bill said failure of Smart to submit requisite annual report to Congress shall be penalized by a fine in the amount of P500 per working day of noncompliance. The fine shall be collected by the National Telecommunications Commission (NTC) from the delinquent franchise grantee separate from the reportorial penalties imposed by the NTC.
Meanwhile, House Bill 4631 said subject to the provisions of the Constitution and applicable laws, rules and regulation the franchise granted to GMA Network, its successors or assignees under RA 7252 to construct, install, establish, operate and maintain for commercial purposes and in the public interest radio and television broadcasting stations in the Philippines, including digital television system, operation of any station or facility in the interest of public safety, security and public welfare or to authorize the temporary use and operation thereof by any agency of the government, upon due compensation to the grantee, for the use of the stations or facilities during the period when they shall be so operated.
“This franchise shall be in effect for 25 years from the effectivity of this act, unless sooner revoked or canceled. In the event the grantee fails to operate continuously for two years, this franchise shall be deemed ipso facto revoked,” the bill added.
The two bills will be submitted to the Senate for its own deliberations.
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