Section 9Sec./Art. 9

Section 12 of Republic Act No. 7716 is hereby amended to read as follows:

"Section 12. Section 117 of the National Internal Revenue Code, as amended, is hereby further amended to read as follows:

"Section 117. Tax on franchises. Any provision of general or special law to the contrary, notwithstanding, there shall be levied, assessed and collected in respect to all franchises on radio and/or television broadcasting companies whose annual gross receipts of the preceding year does not exceed Ten million pesos (P10,000,000.00), subject to Section 107(d) of this Code, a tax of three percent (3%) and on electric, gas and water utilities, a tax of two percent (2%) on the gross receipts derived from the business covered by the law granting the franchise: Provided, however, That radio and television broadcasting companies referred to in this section, shall have an option to be registered as a value added tax payer and pay the tax due thereon: Provided, further, That once the option is exercised, it shall not be revoked.

"The grantee shall file the return with, and pay the tax due thereon to, the Commissioner of Internal Revenue or his duly authorized representative in accordance with the provisions of Section 125 of this Code and the return shall be subject to audit by the Bureau of Internal Revenue, any provision of any existing law to the contrary notwithstanding."