Imported Books Exempt from Taxes in Philippines

A senator on Jan 4, 2012 lauded the Department of Finance (DoF) for issuing an order lifting the imposition of import duties and Value-Added Tax (VAT) on imported books.

Sen. Pilar "Pia" Cayetano said the recent move of the finance department would help foster a culture of reading in the country and promote love of books especially among the youth.

Department Order No. 57-2011, issued by the DoF last Dec. 12, and which was published on a national newspaper last Dec. 25, affirms the duty-free and VAT-exempt status of all imported books, whether for commercial or personal use.

"When the government taxes books, regardless of whether it is published locally or abroad, it is equivalent to taxing reading as a habit," Cayetano said.

"This doesn't make sense because we would effectively be discouraging reading and penalizing an activity that otherwise would have long-term benefits for Filipinos and our future," she said.

Cayetano, chair of the Senate committee on youth, women and family relations said the directive should settle any questions on the tax-free status of imported books.

She said the Department Order is very clear in that it covers all imported books, whether for commercial or personal use, except those published by or for a private commercial enterprise for advertising purposes.

"DoF Order No.57-2011 will allow more individuals, groups and learning institutions to bring in books to help encourage reading among our youth, broaden their knowledge and help them become productive members of society," she said.

"Overall, it could open up many opportunities to improve our educational system," she said.